5 Money-Saving Car Tricks for Cutting Costs on Insurance, Gas and Repairs
Experts share advice on insurance plans, repair costs and ways to cut down gas costs
While public transportation can be helpful, many people can’t get from place to place without a vehicle of their own. Cars are convenient and can save a lot of time when you have somewhere to be. However, dealing with all the expenses is not as ideal. Whether you’re buying a new car or a longtime owner, you need to worry about insurance, general maintenance, gas prices, repairs and more. To help keep car costs low, we turned to the experts. Keep reading to discover money-saving car tricks and how you can implement them.
Money-saving car tricks
From insurance claims and regular maintenance to unexpected repairs and, of course, high gas prices, owning a car can be quite expensive. Here, the best money-saving car tricks and how to implement them:
Understand insurance plans
According to Divya Sangameshwar, an insurance expert at LendingTree, shopping around for auto insurance is the best way to save considerable cash without compromising coverage. “Insurance companies often charge widely different rates for the same driver and similar coverage,” she says. She suggests asking your insurance provider or agent these questions when looking:
- What kind of coverage will I need?
- What does the auto insurance policy cover?
- What does the auto insurance policy not cover?
- What coverage do I have for scenarios where I could lose my car, such as if it is stolen, totaled, or flooded?
It’s also important to know your deductibles to ensure you have enough money to pay out of pocket when you file a claim.
Trim down on premiums
By taking a defensive driving course, you could save a good chunk of change on insurance. This easy-to-follow class is available online or in person and typically requires 4 to 6 hours to complete. Once done, most major car insurance carriers (Allstate, Farmers, Geico, and Nationwide) reward you with a rate reduction. Simply call your insurance company to find out which courses qualify.
Buy car parts on your own
If you’ve ever had to replace a tire, mirror, lights or anything else, then you know these parts can be costly. “One of the best ways to save on car maintenance is to buy parts that need to be repaired on your own and bring them to a mechanic to be installed or replaced/fixed,” says Andrea Woroch, consumer savings expert at Andrea Woroch.
Woroch adds that you can find auto parts for less online at sites like AutoZone, Advance Auto Parts, or even eBay. The best thing to do is shop online and find out which parts are the cheapest. Compare prices from different sites and manufacturers, then ship the parts to your mechanic and only pay for the installation or labor costs.
Improve your credit score
A higher credit score is ideal for lower car expenses. “Drivers with a high credit score and strong credit history often get lower premiums because insurers see them as responsible and less likely to file claims,” says Sangameshwa. She cautions that not all states let insurers to use credit scores to determine auto insurance premiums, though, so double-check what your state allows.
Better credit can also help with a loan. Elaine King, MBA, CFP, founder of Family and Money Matter and CFP Board Ambassador, also recommends refinancing your auto loan if rates have dropped or your credit score has improved. “This can save you hundreds or even thousands over the life of the loan.”
Cut down gas costs
Saving money on gas is crucial to cutting car costs. Start by maximizing your fuel rewards. “Pay attention to which card you swipe at the pump as a gas rebate credit card will help you earn more when fueling up, says Woroch. You can compare gas rebate cards at www.CardRates.com
Sangameshwa adds that you can also pay in cash for lower prices and fill up earlier in the week. “Gas prices tend to be a few cents higher on weekends and Fridays – especially before holidays or long weekends.”
Pro tip: Avoid gas stations on busy highways, near tourist attractions, or near airports, as prices are the most costly here.
Look out for scams
Getting financing from a car dealership? Some dealers agree to a small down payment and low interest rate, but then call days after you drive off the lot claiming your financing fell through and you need to pay more to keep your vehicle. To dodge it: Ask if the down payment and interest rate are “final” (no changes can be made) or “conditional” (they can ask for more) and don’t sign a contract with blank fields. Or avoid it by getting a pre-approved loan from an independent lender.
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