Car insurance is a necessary expense for drivers, but it can be a significant drain on your budget. Ramit Sethi, the personal finance expert and author of “I Will Teach You to Be Rich,” has plenty of advice on how to save money on your car insurance premiums. Sethi believes that by following a few simple tips and tricks, you can lower your costs and still get the coverage you need.
Shop Around for the Best Rates
One of the most important steps you can take to save money on car insurance is to shop around for the best rates. Don’t just accept the first quote you receive from your current provider. Take the time to compare rates from several different insurers to find the best deal. Sethi suggests using online tools like Gabi or Policygenius to make it easier to compare rates and coverage options.
Consider Raising Your Deductible
If you’re willing to take on a bit more risk, you can save money on your car insurance premiums by raising your deductible. The deductible is the amount you’re responsible for paying out of pocket before your insurance kicks in. By raising your deductible, you can lower your monthly premiums. Just be sure that you have enough savings to cover the higher deductible if you ever need to file a claim.
Bundle Your Insurance Policies
If you have multiple insurance policies, such as auto and home insurance, consider bundling them together with the same provider. Many insurers offer discounts for customers who bundle their policies, which can help you save money on your overall insurance costs. Be sure to compare the bundled price to what you would pay for each policy separately to ensure that you’re getting a good deal.
Drive Safely and Maintain a Good Credit Score
Your driving record and credit score can also have an impact on your car insurance premiums. By maintaining a clean driving record and a good credit score, you may be able to qualify for lower rates. Sethi suggests checking your credit report regularly to ensure that there are no errors or inaccuracies that could be negatively impacting your score.
Consider Usage-Based Insurance
Usage-based insurance is becoming increasingly popular, especially among younger drivers. This type of insurance uses telematics technology to track your driving habits, including your speed, acceleration, and braking. If you’re a safe driver who doesn’t spend a lot of time on the road, you may be able to save money on your premiums by opting for usage-based insurance.
Ask About Discounts
Many insurers offer discounts for various reasons, such as having a certain occupation, being a member of a particular organization, or having certain safety features on your vehicle. Be sure to ask your insurer about any discounts that you may be eligible for, and make sure you’re taking advantage of all available discounts to save money on your premiums.
Conclusion
Car insurance doesn’t have to be a financial burden. By following these tips and tricks from Ramit Sethi, you can save money on your premiums without sacrificing the coverage you need. Remember to shop around for the best rates, consider raising your deductible, bundle your policies, drive safely, and ask about discounts. With a little bit of effort and research, you can find a car insurance policy that fits your budget and your needs.
