While car insurance is a necessity, rates can vary widely. Since insurance is a large part of you single parent finances, you need to save money whenever possible so that you can spend those dollars on those things that are more important to you. The tips below will help you get the best rates.
Raise Your Deductible
If you have enough money in savings to cover a higher deductible, consider raising your deductible. You can often go as high as $1000. Compare the costs at various deductible levels and see which one is the most cost-effective. Again, if you do not have savings to cover the deductible amount, then you will need to keep a lower deductible until you can build more savings.
Also, you may have to totally cover small claims yourself if they do not meet your deductible. Remember that making certain types of claims can make your rates go up or even throw you into the high-risk category. That being said, you probably will not want to make small claims with your insurer in order to avoid this risk, so you could decide that you may as well have the higher deductible since you would cover a certain dollar amount of damages out of pocket anyway.
Security Device
Inform your insurer about any security devices that are installed on your vehicle. Ask what the discounts are for various types of devices. Price the devices, and then decide if the payback is enough to justify buying the security device.
Mileage
If you do not drive the car much, be sure to ask about mileage discounts. Also, if you use of the car changes such as you get a new job on a bus route and quite driving to work or you get a job closer to your home, let your insurer know.
Combine Policies
If you have a homeowner or renter policy, insuring your car with the same company can result in a discount.
Shop Around
Rate differences between various insurers can be large. You can try online quote services, or you might want to try an insurance agent that can work with several different companies to get you the best rate.
Safety Devices
Some safety devices such as airbags and antilock brakes can result in a discount.
Price Policies Before You Buy Another Car
If you are considering several makes and models of cars, get quotes for each vehicle. You may be surprised at the price difference between two vehicles that appear to be very similar.
Shop Around Again Every Year or Two
Insurance rates can change, or your driving habits may be different. It pays to shop around every year or so to see if another company might be able to offer you a significant cost savings.
Use the tips above to help reduce the car insurance costs in your single parent finances.