Insurance Update
I’ve recently begun paying for insurance on my new car, a ’96 Mustang GT. I’m currently getting liability coverage, I’m 19 and have held my driver’s license for over three years. After shopping around, the best rate I’ve found is $350 a month with Progressive. Does anyone have suggestions on how I might lower this monthly cost? I’d prefer not to spend one-sixth of my paycheck on car insurance. Also, I’m active duty enlisted in the Air Force, which could potentially help. Thanks for your help!
Hey! Congrats on your new Mustang GT! Here are a few tips to potentially lower your car insurance premium:
Military Discounts: Since you’re active-duty Air Force, make sure to ask about military discounts. Many insurance companies offer reduced rates for service members.
Increase Deductibles: If you’re comfortable with it, increasing your deductibles can lower your monthly premium. Just be sure you can afford the higher out-of-pocket cost in case of an accident.
Bundle Policies: If you have other insurance needs (like renters or homeowners insurance), consider bundling them with the same company for a discount.
Good Student Discount: If you’re taking any college classes, some insurers offer discounts for maintaining a good GPA.
Defensive Driving Course: Completing a defensive driving course may qualify you for a discount.
Low Mileage Discount: If you don’t drive much, let your insurer know, as low mileage can sometimes result in lower premiums.
Comparison Shop Again: While Progressive is a good option, it might help to check with other insurers again, as rates can vary significantly. It might also be worth looking at local credit unions or smaller insurers.
Review Your Coverage: Given its age, make sure your coverage is appropriate for the value of your Mustang. Liability is essential, but consider if you need comprehensive or collision coverage.
Pay in Full: If possible, paying for six months or a year up front can sometimes save you money compared to monthly payments.
Ask for Discounts: Don’t hesitate to ask your agent if there are any additional discounts you might qualify for that you haven’t considered.
Good luck, and I hope you find a more manageable rate soon!