When you're just getting established in life, every dollar counts. And one way that you can effectively manage your budget is to look at reducing some of your monthly bills. One bill that falls under this category is your auto insurance bill. If you can consistently stay out of at-fault accidents, you'll be able to see a decrease in your premium over time. However, it's possible to reduce the amount that you pay in the short term by making a few different changes. Here are three ways that young drivers can save money on their auto insurance.
Improve Your Grades
Provided that you attend school on a full-time basis, your academic success can translate into a reduction in your auto insurance premium. Insurance companies take slightly different approaches to rewarding students who excel in the classroom, but making good grades can save you money. Generally, you'll need to keep a grade point average of 3.0 or more. If you raise your grades to this level, you simply need to obtain a copy of your high school or college transcript and send it to your local insurance agent to have the discount put on your insurance policy.
Spend Less Time Driving Your Vehicle
Insurance providers commonly provide discounts for drivers who keep their annual mileage low by using public transportation. Even if you've only been driving for a few years and love the high degree of independence that your vehicle provides, you can end up with more money in your pocket each month by finding other ways to get to school and your part-time job. Although there is a cost to public transportation, many transit agencies offer student rates for taking the bus, subway or train as your commuting method. You can also consider walking or biking to nearby destinations to help keep your mileage low and be eligible for a discount. Keeping your annual mileage to less than 15,000 miles can often put you in line for this premium reduction.
Invest In An Anti-Theft System
Even if your available funds are occasionally at a premium, it's worthwhile to think about investing in an anti-theft system for your vehicle. Having this system installed and letting your insurance company know will put you in line for a discount. This can be a smart move for young drivers who spend lots of time driving and parking in the city, given that your car is often at a theft risk when it's parked in a public area.
Insurance is something that I carry in the hopes that it never has to be used. Along with life coverage, I also have low cost auto insurance and a health plan through my employer. I'm toying with the idea of adding some additional coverage, just in case something happens and I'm no longer around to take care of my family. The question that is on my mind is how much insurance is enough? Do I really need more, or would it be better to cultivate other assets that my loved ones can draw on if needed? If you are in the same boat, let's journey together for a while. Read on and I'll explain what I'm trying and why. Together, we can figure out when it is time to add more coverage and when enough really is enough.