Are you expecting a tax refund this year? What if you could put even more money in your wallet this tax season? As a car owner and driver, you have several options for cutting costs and holding on to more of your cash!
1. Create an emergency savings account with a portion of your refund. This is a form of self-insurance and can save you money every month. For example, raising your car insurance deductible from $250 to $1,000 could save you hundreds of dollars this year. The $1,000 will be there to cover your deductible if you need it. In the likely event that you don't use it, you'll have a headstart on savings next year and earn some interest in the process.
2. Many independent insurance agents also help with tax returns. After you file, ask your agent to review your coverage for opportunities to save or increase your protection for the same price. According to Jim Gober, CEO of Infinity Insurance, "Every tax season, many Infinity agents help consumers file their taxes, and save money on their auto insurance at the same time. If you're an income tax do-it-yourselfer, you can still call insurance advisors, like those at 1-800-INFINITY, for a free assessment."
3. Thinking about replacing that old car with a newer one? Some insurance costs are actually lower for newer cars with modern safety features. Even if you decide to hang on to your rusty, trusty jalopy, your insurance advisor can make sure you aren't paying for more insurance than you need.
4. Has your driving record improved? A lot can change in a year and tax time is a good reminder to check on your eligibility for car insurance discounts and savings. Older accidents and violations may not affect your rate as much as recent activity.
5. Are you currently making monthly payments? You may be able to save money on transaction fees by signing up for automatic payments. Some insurance providers may be able to offer lower costs if you choose to use part of your refund to pay your policy in full.
At tax time or any other time, it pays to remember that you are in the driver's seat when it comes to car insurance costs. Take advantage of these tips to help make the most out of your tax return this year.