We’ve all seen the gimimicky car insurance commercials. Whether it’s Allstate’s reckless mayhem driver or Geico’s hump day camel, it’s easy to dismiss these as simple attention grabbing marketing ploys.
Surprisingly though, there’s actually a few nuggets of financial wisdom in some of these ads. Chief among them: “save drivers save”.
You may have even heard that exact phrase in a number of commercials. The reason is simple, it’s completely true.
Safe driving is the most important factor in determining your car insurance rates.
In fact, a clean driving record- no history of accidents or speeding tickets- can save you up to thousands of dollars on car insurance per year. If you fall into this elite category, it could be worth shopping around to see if you’re getting the best rate possible.
That’s one of the most interesting parts of personal finance. It’s not just investing or following a monthly budget (although those are both necessary), it’s also about finding any unique way to save on monthly expenses.
If you’re not quite there yet with safe driving, here’s a few things to focus on in order to improve that record. Most car insurance companies offer real time tracking via an app on your phone, so monthly improvements in driving quality can translate to real monthly savings.
- Drive under the speed limit.
- Don’t drive and drive.
- Wear your seatbelt.
- Pay attention. No texting or even phone calls behind the wheel
- Keep a safe following distance from the car in front of you.
- Be patient. You can’t control other drivers, only your reactions
- Drive defensively always keeping an eye on other drivers
Some of these may seem obvious, but together they ensure consistently safe driving. It’s not exciting, but it can save you up to 30% depending on your car insurance company.
For us, that’s even more thrilling than a Lamborghini flying down the highway at 110 mph. We’ll be in the right lane cruising at 60 counting up our savings!