How to Reduce Car Expenses: 11 Effective Strategies
Owning a car comes with a hefty price tag, from the initial purchase to insurance, maintenance, and gas costs. However, there are ways to cut down on these day-to-day expenses and save some extra cash. In this article, we will explore 11 effective strategies to reduce car expenses and put more money back in your pocket.
1) Skip Buying Additives for Fuel Lines
Fuel additives may promise improved performance and fuel efficiency, but according to the Federal Trade Commission, they rarely deliver on these claims. Not only that, but they can add up in cost over time. Instead of wasting money on these enhancers, explore other ways to save.
2) Don’t Let the Car Idle
If you find yourself idling in your car while waiting in line or picking up your child from school, you’re not alone. Americans waste around 135 billion gallons of gas each year by idling their engines. By turning off your engine during idle times, you can save up to half a gallon of gas per hour.
3) Keep Those Tires Inflated
Properly inflated tires not only improve safety but can also save you money. The Environmental Protection Agency and the Department of Administration state that maintaining proper tire pressure can improve gas mileage by up to 3 percent. Take the time to check your owner’s manual for the recommended tire pressure for your car.
4) High Credit Score Saves in Two Ways
Your credit score plays a significant role in your car savings. A higher credit score increases your chances of qualifying for a lower interest rate when purchasing a vehicle. Additionally, insurance companies factor in credit scores when calculating premiums. Maintaining a good to excellent credit score can result in substantial savings on both fronts.
5) Stop Speeding and Driving Aggressively
Driving aggressively and speeding not only puts you at a higher risk of accidents and tickets but also increases your insurance premiums. On average, insurance premiums increase by 23 percent after a speeding ticket. Consider whether the time saved by driving aggressively is worth the potential costs.
6) Self-Insure an Accident
For minor accidents where no one is injured, consider self-insuring and paying for the repairs yourself instead of filing a claim. Putting an accident through your insurance can lead to a significant increase in premiums, sometimes as high as 65 percent. Evaluate the cost of repairs and weigh it against the potential long-term savings.
7) Teen Driver Discounts
Adding a teenager to your insurance policy can result in a substantial rate hike. However, many insurance companies offer discounts for teen drivers with good grades, completion of driver education courses, and low mileage. Consult with your insurance agent to explore these options and potentially save on your premiums.
8) Less Oil Changes
The 3,000-mile rule of thumb for oil changes is outdated for most cars. Consult your owner’s manual to determine how often your specific car model requires an oil change. Many cars can now go longer between oil changes, saving you money on unnecessary maintenance.
9) Pay-per-Mile Insurance
If you don’t drive a lot, consider opting for pay-per-mile insurance. This type of coverage allows you to pay for insurance based on the miles you drive, making it a cost-effective option for those who use their car infrequently. Some insurers use technology called “telematics” to track your driving habits, while others require monthly odometer pictures for mileage verification.
10) Indie Gas Stations
Independent gas stations often offer lower prices when crude oil rates drop faster than name-brand stations. While you may not recognize the name of an independent gas station, you can still trust the quality of their gas and enjoy significant savings on fuel costs.
11) Online Defensive Driving Course
Check with your insurance company to see if they offer discounts for completing an online defensive driving course. These courses typically cost around $50 but can result in hundreds of dollars in savings on your premiums. Note that some courses may have age restrictions, so be sure to inquire beforehand.
By following these 11 strategies, you can effectively reduce your car expenses and keep more money in your pocket. From avoiding unnecessary additives to practicing safe driving habits and exploring alternative insurance options, there are plenty of ways to save on the costs associated with car ownership. Take control of your car expenses and start saving today!
