Everyone loves to save money, but not everyone understands their car insurance. It can seem overwhelming to dive into the world of car insurance. There are multiple companies saying they can help you save and plenty of opinions floating around. This article takes the tsunami of information and pulls out three digestible tips which will save you money.

Number 1: Raise Your Collision and Comprehensive Insurance Deductibles

Collision insurance covers damages to your car in the event of an accident, and comprehensive insurance covers damages dealt with outside of a collision. For example, comprehensive insurance steps in if a tree branch falls on your car.

An insurance deductible is an amount that you pay out of pocket towards a covered claim. For instance, if your car receives $1,500 in damages and you have a $500 deductible, you pay $500, and your insurance covers the remaining $1,000.

So, why would you want to increase the amount you pay in the event of using your insurance? It may seem counterintuitive but stick with me. If you aren’t willing to pay more upfront in the event of an accident, then you are seen as a risky customer to the insurance agency. As a result, they will charge you a higher premium. The increased premium adds up over time. Hopefully, you will never have to use your deductible. Even if you do, you will likely pay less overall with a lower cost in premiums due to a higher deductible.

For the best rates, it is smart to set your deductible at $1,000. However, make sure you have at least that much saved up in an emergency fund. Never have your deductible exceed the money you have saved to pay it.

Number 2: Choose the Six Month Premium Rate

This one is a no-brainer so long as you stay on top of budgeting.

When you pay the monthly rate as opposed to the six-month rate, you will be charged slightly more. Even a small difference can have an impact over time. Depending on your insurance, you may save around $120 per year by choosing to pay every six months.

I recommend setting aside money each month in order to pay the six-month premium when it comes around. That way, you won’t have to stress as the bill approaches. It will feel just like using the monthly rate with the added benefit of saving money.

Number 3: Keep Shopping Around

Although there are exceptions, the car insurance business isn’t the best when it comes to rewarding brand loyalty. In fact, it can sometimes be the exact opposite. If you’ve stuck with an insurance agency for a long time, they will be less worried about losing you as a client. The company may steadily increase your premiums because they don’t think you’re going anywhere. Also, car insurance companies tend to reserve their best deals for new clients in order to attract more business. Why not keep checking in on what’s out there?

One reason people stick with a less favorable deal is that researching new auto insurance plans can be a pain, but it doesn’t have to be. I recommend checking out the site Gabbi.com. You input your current coverage, and it compares prices for the same level of insurance across multiple companies. That way, you know you’re getting the best deal possible without a lengthy search.

The best rate possible for you can change locations. Don’t be afraid to chase it.

I wish you all the best of luck turning premium money into savings or fun money. Although there’s a lot to explore, these three tips are some simple changes you can make now to save money on car insurance. Drive safely!