This is some advice based on my real-life experience on how I cut down my plan by $54 a month! Whether you are rolling in dough or not, you might have felt pressured to immediately sign onto a car insurance plan on the day when you bought or leased a car. Here are some tips on how to lower your car insurance monthly payment.
It’s always great to research, but remember, you got folks that are paid to help you out, especially if they just gained a new customer and a huge sale.
1. Let your new car company do the math and call out duplicates
Send your car company representative the list of benefits from your car insurance policy statement and ask them if there are any duplicates. Let them help you to lower your car insurance costs.
A real-life email example is below:
I can’t remember clearly if it was yourself or another sales rep who mentioned I was paying double on part of my insurance coverage vs lease. Below is my car insurance coverage – do you see anything that overlaps with what I am paying as part of my lease agreement?
Bodily Injury $50,000/$100,000 Property Damage $50,000 Uninsured/Underinsured Motorist - Bodily Injury $50,000/$100,000 Uninsured/Underinsured Motorist - Property Damage $50,000 Comprehensive Deductible $500 Collision Deductible $500 Emergency Road Service Yes Car Rental and Travel Expenses $25/Day Max $600
The response I received was “As for your insurance the only overlapping coverage you have it the Roadside assistance! That is complimentary on every new Subaru.”
Woohoo! That removed an annual fee charged in their “add-on coverage” category.
2. Ask Insurance Agent to reconsider your rating because you haven’t been in an accident or got a ticket and now you’re older
With my new Subaru lease of two years, I haven’t been in any kind of car accident or traffic violation. Also, because I got the car when I was a ripe 27 year old and haven’t been living in the USA in years, plus this was my first car under my name, they skyrocketed my premium. With a clean record of the past two years, she changed my rating.
3. Ask Insurance Agent to relook at the policy coverage, if there are any lower-tiered policies, and if you are on a more “premium” coverage
Buying or leasing a car for the very first time can be so exhausting. You are literally in their car shop for most of the day, and there’s a lot of paperwork involved. Whether it was yourself or the insurance agent on the phone that made a mistake… you might be paying more than you need to. Ask your local insurance agent that you have been assigned with to relook at the entire policy coverage and see if there is any wiggle room.
4. Ask Insurance Agent if there is a safety driving discount and tool
For example, State Farm has a “Drive Safe & Save™” program where there is a Bluetooth badge you chuck in your car, and you connect to their mobile app that tracks your driving. In a nutshell, it rewards you for driving safe and not like a 16-year-old cool kid wannabe. It immediately gives you a 5% savings on the day you sign up. And on a monthly basis, depending on how safe you drive, you could get a discount of up to 30% on your bill. Umm… hell yeah, it’s awesome!
5. Ask Insurance Agent if they accept state initiatives like Defensive Driving Course Discount
I haven’t taken a driver safety course since I was 16. But if it’s going to help me save an additional 5-20%, heck yeah. It costs about $20-40 online to do the course. When you see the discount applied every month, it is going to change your world. Anything to help you to lower your car insurance costs will help you to spend money elsewhere.
If you have been driving safely for three years, you might be eligible for some serious discounts such as the “Good Driving Discount” or “Accident-Free Discount”. All these options are great and very doable if you are just driving safely everyday.
The best part of it all? You can use all this extra money to pop it over to your savings account, buy yourself brunch with a mimosa, or grab a couple more avocados for breakfast.