Simple Strategies for Affordable Auto Insurance

If your goal is to minimize your premiums, finding affordable car insurance quotes is half the battle. However, your opportunities to cut costs don't end there. Even after you've selected a policy and a carrier, you can take additional simple steps to put affordable auto insurance within your reach. Make your policy inexpensive and manageable with the following strategies.

Focus on Your Personal Finances

So many of the steps you can take toward affordable auto insurance involve small adjustments to the way you manage, spend, and save your money. For example, a simple way to an affordable car insurance policy is to raise your deductibles, but you will do so at your peril unless you have enough money saved to pay that deductible if you have an accident. Similarly, planning ahead for your monthly bills, including your car insurance bill, will help you pay on time—another key to affordable rates.

To help you achieve these goals, create a workable personal budget that accounts for all your income and expenses on a monthly basis. Also include short- and long-term financial goals in your plan. Refer to the budgeting timeline on this page for a visual representation of how to approach the budgeting process. Make sure your budget allows for a sufficient level of savings to cover the deductible you've selected if need be. Saving toward a potential deductible expenditure will allow you to avoid paying more in premiums for a lower deductible than you need. Remember budgets are meant to be malleable, not inflexible absolutes. Evaluate how practical and effective your budget is on a regular basis and modify it as necessary.

Arrangements with Your Carrier

Carriers can help you achieve affordable car insurance through a variety of potential arrangements. For instance, the payment plan you select will influence your auto premiums. Talk to your carrier to discuss the possibility of annual, bi-annual, monthly, or twice monthly payment plans. In general, the most affordable car insurance comes with the lump-sum annual payment of a premium, but this is not financially feasible for most. If not, you might want to inquire about a manageable twice-monthly plan. More and more carriers offer this option, which breaks a regular payment in two to accommodate your income stream.

If your carrier and state allow it, you might also look into opting for pay-as-you-drive coverage and agreeing to install a mileage-tracking device in your vehicle. For policyholders who don't drive very often, pay-as-you-go might make auto insurance substantially more affordable. From certain carriers, you may even be able to request affordable car insurance quotes specifically on such coverage.