Reddit’s top auto insurance tips

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You don’t want to be on the road without it.

Key points

  • Car insurance is a legal obligation and usually also a financial necessity.
  • Reddit’s r/personalfinance is a great place to find car insurance coverage tips and advice.
  • You can save money on insurance by shopping around and adjusting your deductible, and it’s a good idea to buy more coverage than your state requires.

I’m sure I don’t have to tell you how extremely important it is to have car insurance, let alone the fact that it’s illegal to drive without it in almost every state. So if you own a car, you need to balance the right insurance coverage for your vehicle and your situation with your ability to afford that coverage.

Reddit is an online news aggregator and discussion website, and it’s packed with useful information and advice on all sorts of personal finance issues, including car insurance. Anyone can post and answer questions on Reddit, which means you often have to take advice with a grain of salt (and do some extra research before acting). However, there are many excellent pockets of information, sometimes even posted by current and former insurance company employees. Let’s dive into some of the best auto insurance tips from Reddit’s r/personalfinance.

Shop for policy rates

It can be very easy to give in to inertia and stick with the same car insurance company for years, as it can be difficult to find the time to compare policy prices. Fortunately, the internet age has made this easier. drivers no longer need to call insurers or visit agents in person to get quotes. The best way to make sure you’re not overspending on car insurance is to shop around and see which insurers will offer you a policy.

Buy more insurance than your state requires

Almost all states require a certain minimum amount of auto insurance coverage. Unfortunately, these minimums may not be sufficient to cover a driver, their vehicle and any other vehicle, property or person damaged or injured in an accident. Insurance may be required by law in your state, but it is also there to protect you as the driver and owner of the vehicle. If something terrible happens while you’re driving, you want to be able to pay for the damages and protect your property from legal action from anyone you may have harmed.

Don’t lie to the insurance company

It’s always a bad decision to hide the truth from a company you do business with, for a number of reasons. If a driver tells their insurer that they drive much less than they actually do, just to save money on their coverage, the company will find out. It will also know if the driver has a speeding ticket or an accident on their driving record. It’s not worth voiding a policy for a lie.

Get rental car coverage

Many auto insurers offer an option that will cover the cost of a rental car if a car is out of service due to an accident or covered mishap. It’s worth paying for, according to Reddit, and I’ll co-sign this point as well; I have been without my car for periods of time as it needed repairs, and I needed a car to get to school or work at the time, so having a rental car covered by my insurer saved my life. This can be particularly crucial if a car is to be out of service for several weeks; rental cars are not cheap.

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Adopt the discounts

Many car insurers offer a myriad of discounts to drivers in various situations. You can get discounts for being a safe driver, for being in the military, and even for getting good grades, if you’re a student. One of the best ways to save money on auto insurance is to bundle your policy with other insurance, if you have one. For example, I keep my renters insurance and car insurance together, and this move saves me enough to cover the entire renters policy. When you get prime rate quotes, see what discounts you might be eligible for.

Adjust your deductible (but make sure you can afford it)

Another way to save money on auto insurance is to increase the deductible. A deductible is the amount of money the policyholder must pay out of pocket on the claim before the insurer pays the rest. If a deductible is higher, policy costs will be lower, and vice versa. If a driver has a strong emergency fund and knows they can afford a higher deductible in the event of a claim, this is a good strategy to save money each month. However, if they are in the least worried that they won’t be able to afford a higher deductible, or if the money saved by raising it isn’t worth it, it’s fine to keep it lower.

We Americans like to drive our cars; romance and the freedom of the road are an integral part of our culture. Auto insurance might not be in that fantasy, but since it’s both legally required and financially beneficial, you might as well embrace it and try to get the best coverage for your money.

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