With student loans and just entering the job market, millennials are looking for new ways to save. Average student loan payments cost around 300 dollars per month. If you don’t find a decent paying job right out of college, it can be a struggle to make those payments each month. If you add on the cost of car insurance then it can be near-impossible to manage.
There are a few people that have found some great tricks to help them save money on their car insurance.
Insurance Tricks for Millennial
First, never let your insurance coverage lapse. Even after your first year of coverage, most companies offer a discount for maintaining continuous coverage under their plan. You might think your insurance is high for that first year, but if you stick with your company, it usually gets better over time.
You should also do research before selecting a company because once you have your company its best to stick with them.
Bundling is your new best friend. If you bundle your auto insurance with your homeowner’s insurance, you could save around 100 per month.
Credit is the key when it comes to saving on your monthly car insurance payments. Often, the higher your credit scores the lower your insurance cost will be. It would benefit you to use your card for necessities to build your credit score.
Never buy a new car. Since 2012, the auto industry has been ramping up prices and as soon as the car rolls off the lot it immediately depreciates in value. You should invest in a car that’s at least 5 years old and has low gas mileage instead.
Look for education-based discounts. You may be graduated but some companies offer discounts to people that have their degrees.
One of the most useful tools is to sign up for automatic payments. Most companies will give you a discount for connecting your account for automatic payments. You have to pay the bill anyway, why not make it more efficient at a discount.
Car insurance companies offer discounts for things that prove you’re a responsible person, whether that’s having a higher education, being older, having a better credit score, or anything else you might imagine.