In a recent episode of the PennyWise podcast, host Nat Cardona teams up with NerdWallet expert Melissa Lambarena to share practical tips for saving on car insurance. While car insurance is a legal requirement in many states, paying too much for coverage is not. This episode offers valuable strategies to help listeners secure affordable car insurance without sacrificing necessary coverage.
The discussion kicks off with the benefits of working with an independent insurance agent. Unlike online comparison tools, independent agents can shop for policies from multiple insurance companies, including smaller, regional carriers that may offer lower rates. Agents can also identify potential discounts and guide customers in selecting appropriate coverage limits based on individual needs.
Another key tip revolves around asking for available discounts. Bundling policies—such as combining home and auto insurance—can result in significant savings. Melissa Lambarena also highlights discounts for safe driving, paperless billing, and enrolling in automatic payment programs. She urges consumers to always inquire about these potential savings, as they can easily be overlooked.
Next, Lambarena explains the benefits of raising your deductible. Opting for a higher deductible can reduce your insurance premium, but it’s important to assess whether you have enough savings to cover the cost in the event of an accident. This strategy may not suit everyone, so consumers should carefully consider their financial situation before making changes.
The podcast also touches on the option of dropping comprehensive and collision coverage for older vehicles. If a car’s value is low and repairs can be covered out of pocket, removing these coverages can result in further savings. However, Lambarena advises listeners to weigh all potential repair and replacement costs before making this decision.
Improving credit scores is another important factor in securing lower insurance rates. In most states, insurance companies use credit-based insurance scores to determine premiums. By paying bills on time and keeping credit utilization under 30%, consumers can boost their credit scores and potentially qualify for better rates.
Finally, Lambarena emphasizes the importance of regularly shopping around for insurance. Even if you’re satisfied with your current policy, checking for better offers annually is a smart way to ensure you’re getting the best deal. She encourages listeners to ask about discounts each time they renew or compare policies, noting that the worst response you can get is a simple “no.”
