It looks more likely by the day that we’re heading for a recession. There’s no guarantee as of yet, but either way, we should be as prepared for it as possible.

Of course, the best time to prepare for a recession isn’t in the days or weeks before it starts. Ideally, we’d all have planned for this years ago. But the reality is that we’ve only recently come out of a recession and most people haven’t really had a chance to achieve any sort of stability.

When preparing for a recession, a good place to start is by looking at what you consider fixed items on your budget. Most cannot be changed, but when it comes to car insurance, you may be in luck. You can search for insurance discounts to help you get through the worst. The insurance industry has been changing in response to recent events, and has found ways to better serve consumers.

Do you know if you’re paying too much for car insurance? Here is how you can save money.

Compare Quotes

Before looking for discounts with your current insurer, you should check if they are overcharging you. By comparing quotes and coverage options from other insurers, you may find that you could save significantly just by switching to another provider.

This is most common for people who have been with the same insurer for a long time. While there are those that offer loyalty discounts, some will take advantage of the fact that you haven’t updated your policy. If you had a high claims record, were under 25, or were a new driver when you got your policy, you may still be paying inflated rates.

If, on the other hand, you have claimed frequently with your current insurer, you will likely struggle to find another provider to take you on at a better price.

Check for Discounts

Insurance has changed significantly in the past decade. An industry that once asked very little of customers has come to recognize that both parties benefit from more give and take. The most basic example of this when it comes to car insurance is that providers commonly offer discounts based on how much you actually drive.

This became particularly prevalent at the start of the pandemic when people had nowhere to go. Cars were sitting unused and the best insurers proactively discounted their customers. Other insurers faced legal consequences for not providing these discounts.

But discounts do not only apply during pandemic times. Your insurer should always charge  you less if you drive less. You may also be eligible for the following kinds of discounts that will make your life easier in a recession.

Passive Restraint Discount

Insurers have long offered the benefit of discounting your premium if you have safety features installed. This includes factory-installed air bags, seat belts, or another passive restraint system. A passive restraint discount should have been a factor in calculating your premium from the start, but if you only recently installed these features, you can ask for your premium to be lowered.

Anti-Theft System Discount

In the same vein, insurers charge less for cars with anti-theft systems installed. Again, this should come into play from the start, but if you’ve recently installed an anti-theft system, you should ask for a discount from your insurer.

Good Driver Discount

This is the big one. The best car insurance providers now take how you drive into account. They do this by installing a device which tracks your driving. There are specific indicators that show how well you are driving, about which your insurer should be transparent. Sudden breaking, sharp turns, and speeding are the big no-nos, while soft turns and driving at the speed limit will get you the discounts.

Your insurer may charge you for the tracking device, but from there, you should only save money. In addition, with the incentive to drive more safely, you are less likely to be in a collision.

Defensive Driver Discount

There is another way of showing your insurer that you are a good driver. That is by taking a defensive driving course, which trains you in driving safely no matter what the conditions. This in itself is a better indicator of how you will react in crisis situations, and your insurer will reward you for it.

Personal Discounts

There are also a number of discounts you may be eligible for depending on your specific scenario. For example, you may be able to get a student discount, a military discount, or a federal employee discount. You should always ask your insurer if they provide these kinds of discounts.

A recession may be on the way and it is difficult to prepare at this point. However, there are ways to cut down on monthly expenses. Start with your car insurance and find out if you are eligible for discounts.

Jane