If you’re like most people, you have more than one vehicle. You might have a car for commuting to work and a truck for hauling cargo. You might have a motorcycle for weekend rides and a boat for summer fun.
With multiple vehicles, you need multiple insurance policies. This can get expensive, but there are a few methods that can keep you from breaking the bank and leave enough room in your budget for other things.
Compare Car Insurance Companies
The first way to save money is to compare car insurance companies. There are a few ways to do this, but the easiest is to use an online tool like ours.
Just enter your zip code and some basic information about each of your vehicles and we’ll show you the rates from different insurers. You can also call each company directly and get quotes over the phone.
Once you have a few quotes, it’s time to start shopping around for the best rates. Not all car insurance companies are created equal. Some will offer discounts for things like having multiple vehicles on one policy or being a safe driver.
Others will charge higher rates if you have accidents or traffic violations on your record. It’s important to compare not only the rates but also the coverage and discounts each company offers.
Consider Bundling Your Policies
One of the easiest ways to save on car insurance is to bundle your policies. Most insurers offer a discount if you have more than one policy with them.
This could be anything from a small percentage off each policy to a flat rate reduction. The exact amount depends on the insurer, but it’s typically between five and 15 percent.
There are a few things to keep in mind when bundling your policies. First, make sure that all of your vehicles are insured by the same company. You can’t get the discount if you have two separate policies for two different vehicles.
Second, check to see if you’re already getting discounts for other things, like being a safe driver or having multiple cars on one policy. These discounts might not be available if you bundle your policies.
Finally, compare the cost of bundling your policies to the cost of insuring each vehicle separately. In some cases, it’s cheaper to have separate policies.
This is usually only the case if you have very different types of vehicles, like a motorcycle and a boat. If you’re not sure which option is best for you, talk to an agent or use an online calculator.
Know What Coverage You Need
The next step is to make sure that you’re only buying the coverage you need. There’s no sense in paying for extra coverage if you don’t need it. For example, if you live in a state that doesn’t require liability insurance, then there’s a need to pay for it.
On the other hand, there are some types of coverage that are required in most states. These include bodily injury liability and property damage liability. If you’re found at fault in an accident, these coverages will help to pay for the other driver’s medical bills and repair their car.
There are also a few optional coverages that you might want to consider. These include collision and comprehensive insurance. Collision covers damage to your own vehicle if you’re in an accident. Comprehensive covers things like theft, weather damage, and vandalism.
Again, the best way to know what coverage you need is to talk to an agent or use an online calculator. They can help you determine what coverages are required in your state and which ones would be a good idea to add to your policy.
Set Your Deductible
Your deductible is the amount of money you have to pay out of pocket before your insurance company starts paying for damages.
For example, if you have a $500 deductible and you’re in an accident that causes $5000 worth of damage, your insurer will only have to pay $4500. You’ll be responsible for the other $500.
The higher your deductible, the lower your premium payments will be. This is because you’re taking on more of the risk yourself. Of course, this means that you’ll have to pay more out of pocket if you do get into an accident.
You should set your deductible as high as you can afford without putting yourself at too much financial risk. A good rule of thumb is to set it at $1000 or more. This will help to lower your premium payments without putting you in a difficult financial situation if you do have an accident.
Budgeting for multiple vehicles can be a challenge, but these are a few things you can do to make it easier.