You don’t want to hit the road without it.
Most important points:
- Car insurance is a legal requirement and usually also a financial necessity.
- Reddit’s r/personalfinance is a great place to find tips and advice on auto insurance.
- You can save money on insurance by shopping around and adjusting your deductible, and it’s a good idea to buy more coverage than your state requires.
I’m sure I don’t need to tell you that having car insurance is extremely important — not to mention that it’s illegal in almost every state to drive without it. So if you own a car, you need to balance the right insurance coverage for your vehicle and situation with your ability to afford that coverage.
Reddit is an online news aggregator and discussion website, and it’s packed with useful information and tips about all kinds of personal financial problems, including car insurance. Anyone can post and answer questions on Reddit, which means you should often take advice with a grain of salt (and do some further research before acting on it). However, there are many excellent sources of information, sometimes even posted by current and former employees of insurance companies. Let’s take a look at some of the best auto insurance advice from Reddit’s r/personalfinance.
Look around for policy rates
It can be very easy to give in to sluggishness and keep the same auto insurance company for years because it can be difficult to find the time to compare policy prices. Fortunately, the internet age has made this easier; drivers no longer need to call insurers or visit agents in person to get quotes. The best way to make sure you don’t spend too much money on auto insurance is to shop around and see which insurers will quote you for a policy.
Buy more insurance than your state requires
Nearly every state requires a certain minimum amount of auto insurance coverage. Unfortunately, those minimums may not be enough to cover a driver, their vehicle, and other vehicles, property, or people damaged or injured in a crash. Insurance may be required by law in your country, but it is also there to protect you as a driver and vehicle owner. If something terrible happens while driving, you want to be able to pay for the damage and protect your assets from legal action by anyone who harmed you.
Don’t lie to the insurance company
It is always a bad move to hide the truth from a company you do business with, for a number of reasons. If a driver tells his insurer that he drives a lot less than he actually does, just to save money on his coverage, the company finds out. It will also find out if the driver has a speeding ticket or an accident on his driving record. It’s not worth getting a policy canceled because of a lie.
Rent car coverage
Many auto insurers offer an add-on that covers the cost of a rental car if a car is out of service due to a covered accident or accident. This is worth paying for, according to Reddit, and I’ll be co-signing this point as well; I was without my car for a while because it needed repair, and I needed a car to go to school or work at the time, so having a rental car covered by my insurance company was a lifesaver. This can be especially critical if a car is not in use for several weeks; rental cars are not cheap.
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Embrace the discounts
Many auto insurers offer numerous discounts for drivers in a variety of situations. You can get discounts for being a safe driver, being in the military, and even getting good grades if you’re a student. One of the best ways to save money on auto insurance is to bundle your policy with another insurance policy, if you have one. For example, I keep my renters insurance and car insurance together, and this move saves me enough to fully cover the renters policy. When you receive policy rate quotes, see what discounts you may be eligible for.
Adjust your deductible (but make sure you can afford it)
Another way to save money on car insurance is to increase the deductible. A deductible is the amount the policyholder must pay out of pocket on the claim before the insurer picks up the tab for the rest. If a deductible is higher, the policy costs are lower and vice versa. If a motorist has a robust emergency fund and knows they can afford a higher deductible if they need to file a claim, this is a good strategy for saving money each month. However, if they’re concerned that they can’t afford a higher deductible, or if the money saved by raising it isn’t worth it, it’s fine to keep it lower.
We Americans like to drive in our car; the romance and freedom of the open road is an important part of our culture. Auto insurance may not fit this fantasy, but since it’s both legally required and financially beneficial, you might as well embrace it and try to get the best coverage for your money.
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