If you’re paying too much for car insurance, it’s time to start looking for better rates. There are many ways to save money on car insurance, Byron Johnson shares some of the most effective tips to save money on car insurance:
Shop around
If you’re like most people, you probably think that your car insurance company is the best one out there and would never consider shopping around for another quote. But Byron Johnson suggests that it’s important to do your research before automatically renewing your policy with whichever company has been offering discounts over the years.
While you’re at it, don’t forget to ask friends, family members and colleagues for recommendations when they get new policies. They can also be helpful when it comes down to negotiating with an insurance company representative on price or coverage terms—especially if they’ve had experience dealing with them in times of need. And finally: read online reviews posted by past customers of different companies! It’ll give you a good idea about what kinds of experiences other people have had with the same insurers or agents (and whether those experiences were good or bad).
Maintain a good driving record
Avoiding accidents is a sure way to save on auto insurance—and it’s not that hard to do. The best advice from Byron Johnson is the same as it’s always been: drive defensively and obey traffic laws. If you’re tailgating or speeding, you’ll likely get into an accident, which will raise your rates (not to mention make you feel like less of a human).
But what if you’ve already had an accident? Chances are good that they’ll still be able to find ways to save money on car insurance because of how much they pay out in claims each year.
Don’t file small claims
If you need to file a claim, don’t file for small stuff. “Small claims are not worth the hassle or time spent on them. If you run into someone and cause damage to their car, but can’t afford to pay for it, then that driver is going to sue you in civil court—and might win!”- Byron Johnson
Instead of filing a small claim, consider borrowing money from family or friends so that when the time comes they will be willing to loan it because they know how much they mean to each other as friends or family members.
Increase your deductibles
The amount of money you pay before the insurance company steps in to cover the rest is known as a deductible—and it can be raised from $250 to $500 or even higher, depending on your car and where you live. According to Byron Johnson, the more people raise their deductibles, the lower their premiums will be. Think about how much you’re willing to risk for a small price cut. If a minor fender bender would cost you $500 out of pocket instead of an insurance claim, maybe it’s worth paying for repairs yourself rather than going through the hassle and headache of filing a claim with an adjuster.
Pay your premiums in full
Byron Johnson recommends paying your premiums in full. Never pay a monthly premium. If you do, your rate will be higher than it would be if you had paid the entire amount at once. This is especially important when it comes to insuring high-value cars, because they are more likely to be stolen or vandalized than cheap ones.
The cost of your insurance premium should go down as the number of years you’ve been insured increases (assuming there aren’t any accidents or tickets on record). This is called “good driver” discounting and is common among most insurers today—it’s basically like getting an employer’s discount if you choose not to drink at work functions.
Buy used cars
This is a very unpopular opinion given by Byron Johnson but note-worthy that buying a used car will save you money in the long run, because new cars are more expensive to insure, and they depreciate faster than used vehicles. When you buy a new car, there’s no telling what kind of maintenance it’ll need over time. However, buying a used vehicle means that you’ll probably save a lot of money on repairs because people tend to drive their cars until they break down completely before getting another one.
Drive safer cars
Driving a safer car is one of the easiest ways to save money on car insurance. The more you drive, the more likely it is for an accident to occur. If this happens, your insurance rates will increase. The less likely you are to get into an accident and therefore have higher-risk as a driver, the lower your premiums will be. “This will feel not so pocket-friendly upfront, but trust me it is”- Byron Johnson
Going from driving an SUV with no airbags and no anti-lock brakes (ABS) to driving a sedan with airbags and ABS can save hundreds or even thousands of dollars per year in unnecessary expenses such as auto repairs and medical bills related to injuries sustained in accidents.
Take advantage of discounts
Discounts for drivers over 55 and good driving records are common. If you have a student driver in the household, make sure they’re being safe behind the wheel as well—you can score another discount for that. And if your credit is clean, it will be better for everyone involved (including your insurer) if you continue to keep it that way by paying off old debts and keeping balances low on current accounts.
Use the same insurer for all your insurance needs
Byron Johnson suggests that it may be tempting to shop around when you need car or home insurance, but it’s also a good idea to use the same insurer (and agent) for all of your insurance needs. The more policies an insurer has in force with a particular agent, generally speaking, the better deals they can negotiate on behalf of their clientele.
About Byron Johnson:
Byron Johnson is a founder, entrepreneur, and CEO known for founding several businesses, including an insurance agency, construction and remodeling company, and commercial real estate investment firm. Byron Johnson is an owner of 150+ units of commercial property located in the up-and-coming Seminole Heights area close to downtown Tampa. Additionally, Byron is a recognized WSOP Poker Player who won 1st place in the WSOP Poker series in Tampa, FL in 2020.
For more information on Byron Johnson, visit ByronJohnson.com or visit his Cheap Car Insurance Guru YouTube Channel where he gives back by sharing free car insurance tips and valuable insurance info daily.
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