If you're concerned about the amount of money that you're spending each month and are looking for ways to reduce your household expenses, it can be beneficial to take a look at the source of a considerable expense -- your vehicle. At first glance, it might seem as though you can't cut down on your vehicle-related expenses more than you're already doing, but the truth is that your insurance rate can often be cut if you know the right strategies to adopt. There's no need to search for a lower rate from other providers; you can stay with your current insurance company but obtain a rate reduction through the following three strategies.
Cut Down On Your Driving
Driving your vehicle less can make you eligible for a low-driver discount. Each insurance provider has its own definition for what constitutes a low-mileage driver, but you'll commonly have to keep your driving to no more than 15,000 miles each year. It can take a bit of an adjustment to leave your vehicle at home more often, but you'll enjoy looking forward to a financial reward for doing so. Get into the habit of walking or bicycling to nearby locations such as the bank or grocery store. You can also explore the option of carpooling or taking public transportation to work.
Raise Your Deductible Amount
The amount of the deductible in your auto insurance policy doesn't affect your day-to-day life, but raising it can help you to save money. Increasing the amount of your deductible means that you'll be paying less per month for your insurance bills. While this strategy can be effective, it's important to only move forward with this idea if you'll be able to put aside the money necessary to pay a larger deductible if you need to make a claim. One useful idea is to save a little money each month in a separate account until you have enough to pay the deductible.
Group Multiple Policies Together
Combining all your separate insurance policies together on the same policy as your auto insurance will put you in line for a rate reduction. Think about the other things you have insured -- you could have homeowners' insurance, life insurance and health insurance. As long as your auto insurance company provides such types of insurance, grouping everything together is a smart financial move. You don't have to stop at your own policies -- putting your wife or partner's policies together with yours will lead to further savings.
Share23 February 2016
