In this episode of PennyWise, host Nat Cardona explores practical ways to secure cheap car insurance with NerdWallet expert, Melissa Lambarena. Car insurance is a necessity in many states, but that doesn’t mean you have to overpay. This episode provides actionable tips to help you get the best deal on your car insurance policy.
The conversation begins with the advantages of working with an independent insurance agent. Unlike online searches, agents can shop multiple insurers, including smaller regional ones that might offer cheaper coverage. They can also identify available discounts and help you choose the right coverage limits.
Next, they discuss the various discounts you can ask about. Bundling multiple policies like car and home insurance, safe driver discounts, and opting for electronic statements or automatic payments can all lower your premium. Melissa emphasizes the importance of always inquiring about these potential savings.
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Another tip is to consider increasing your deductible. While this can reduce your premium, it’s crucial to ensure you have enough savings to cover the higher deductible in case of an accident. This strategy isn’t suitable for everyone, so weigh your options carefully.
They also touch on the idea of dropping comprehensive and collision coverage for older cars. If your vehicle isn’t worth much and you can afford repairs, this can be a cost-effective way to save on insurance. However, it’s essential to consider all potential costs before making this decision.
Building your credit is another key point. In most states, insurers use a credit-based insurance score to set rates. By paying bills on time and using less than 30% of your available credit, you can improve your credit score and potentially qualify for better insurance offers.
Finally, Melissa advises listeners to shop around for the best offers every year and to always ask about available discounts. The worst response you’ll get is a “no,” but you might find substantial savings.
Tune in to this episode of PennyWise for expert advice on securing affordable car insurance. Implement these strategies to ease the financial burden of car insurance and make your money work harder for you.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.