Car insurance is the number one source of personal finance savings, according to a new report from the National Automobile Dealers Association.
The association, which represents the auto industry, is urging Americans to take advantage of the savings from the Affordable Care Act (ACA), the healthcare law passed in 2010 that allows Americans to have insurance through their employer.
“The ACA has made the auto insurance market far more affordable than it was in 2009, so you should be able to save money on your auto insurance without ever having to make a down payment,” said Dan Wiebe, president of the association.
The group recommends that people get quotes from at least two brokers and apply for auto insurance through an auto insurance company.
“Many auto insurance companies don’t charge you an upfront premium and charge you a fee for every claim,” said Wiebbe.
“You can get a quote from as few as two auto insurance brokers.”
According to the NADA, the average monthly premium for a car insurance policy is $1,564.
If you apply through two brokers, the premium could be $1.6 million.
You can get quotes through the NAA’s website, and auto insurance can be bought from a number of different companies.
Some auto insurance policies are more expensive than others.
According to an analysis of more than 1,300 auto insurance quotes published by AAA, a “buddy’s” policy can cost more than a comparable policy from a large corporation.
But auto insurance is generally cheaper for people who drive a lot, have a high deductible and pay their premiums on time.
“If you drive every day, you’re better off buying insurance through a broker and not having to pay out-of-pocket,” said Jennifer Rizzo, associate vice president of AAA’s consumer insights program.
“And if you’re a big-ticket buyer, it’s easier to pay through a third-party.”
Auto insurance policies from AAA can cost between $5,500 and $14,500.
And, if you buy your own car, it could cost you even more.
According the Nada, a person could pay $3,500 for a premium-only policy.
That’s a lot more than the average annual cost of an auto loan, which is $2,872.
Another way to save is to get a car loan.
A car loan can come with a $500 payment that will cover the cost of repairs, insurance and a downpayment.
But the NDA recommends getting a car credit, which can save you thousands of dollars.
It also recommends getting cash back from your auto loan.
“There’s an incredible amount of flexibility in getting cash backs,” said Paul Stoddart, president and chief financial officer of the NAAA.
“We’ve got people that can get it for the first time, pay it back and then get a loan from a bank.”
If you’re interested in how to make your savings more significant, you can check out the NAMA’s free online tool.
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