NerdWallet: 12 ways to make owning a car cheaper

by | Dec 9, 2022 | Stock Market

This article is reprinted by permission from NerdWallet.  Nothing spurs a closer look at your budget like fear of a recession — and for many Americans, cars eat up a big chunk of their funds. According to AAA, the average American will pay $1,062 more in 2022 to own and operate a new car than they did in 2021. These expenses include gas, maintenance, insurance and tire costs.

But just because the cost of owning a car is rising doesn’t mean you have to pay more out of pocket. Here are some tips to recession-proof your car to save on every drive.Pay less for auto insurance Combine your auto and home insurance coverage. Bundling insurance policies often saves you money on your premiums. While the discount varies from one provider to the next, you could save as much as 20%, according to a 2022 Progressive
survey. Ask about discounts. Some insurance providers offer discounts, and not all of them relate to driving. Examples include being claims-free, low annual mileage and even good grades for younger drivers. Talk with your provider to see if you qualify for any discounts. Nerdy Tip: Some insurers will work with you to allow different forms of proof of qualification for a discount. For example, you might be able to show standardized test scores for home-schooled dependents to receive a discount for good grades. Consider a higher deductible. It’s common for monthly premiums to go down as the deductible goes up. Do the math to see if raising your deductible by $250 or $500 would save you money each month. Remember that you’ll need to pay toward your deductible if your car is damaged and your insurer is covering the repairs. Get quotes from other insurers. A different company might be able to provide you with the same coverage for less money. Shop around for auto insurance to see what rates you qualify for, especially if your current insurer has raised your rates over the past few years. Also see: The 9 things that are most likely to affect your auto insurance ratesSave money on car maintenance Know what’s covered by your warranty. If your vehicle is under warranty, educate yourself on what’s covered to avoid paying out of pocket for maintenance or …

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