There are various effective ways to lower the cost of car ownership, some of which might get lost in the weeds if you’re too focused on a single approach. At-home workers in places like Chicago who drive minimally may need to make different changes to lower their costs than someone who’s job takes them on the road.

Are there strategies you haven’t explored recently?

1. Lower Your Auto Insurance Premiums

One of the easiest ways to cut down your car costs is to shop around for cheaper car insurance. Overall rates dipped recently, and the cost can vary significantly between insurers, so don’t just auto-renew every year. Get quotes from at least three companies, including multiple estimates per company based on these variables:

1. Raising your deductible while making sure you can cover the difference in case of an accident
2. Bundling policies like home and auto or other discounts
3. Lower rates for safe drivers, students with good grades, or those who take defensive driving courses

To clarify your options, ask the insurance provider what changes you can make that will reduce the company’s risk or demonstrate that you’re a responsible driver, and reward you with better rates.

2. Drive for Optimal Fuel Efficiency

Gas adds up fast, but small changes in driving habits and maintenance can make a noticeable difference. Anything that reduces the strain on your engine should make the vehicle operate more efficiently, causing your car to use less fuel and your gas dollars go further.

• Keep your tires properly inflated, since underinflated ones can reduce fuel economy by up to 3%.
• Drive smoothly, avoid rapid acceleration and heavy braking, and use cruise control on highways to maintain consistent speed.
• Remove excess weight from your car, like unused roof racks or heavy gear in the trunk.

3. Consider Refinancing Your Auto Loan

If your credit score has improved or interest rates have dropped since you bought your car, refinancing your auto loan could save you a lot of money. By switching to a new loan with a lower interest rate, you should be able to cut your monthly payments and reduce the total amount you pay over time, since less interest will accumulate over the life of the loan. Even shaving off 1-2% could translate into hundreds of dollars saved. Just check for any prepayment penalties on your current loan before making the switch.

4. Address Other Wasteful Driving Habits

If you already have the best loan and insurance rates and fuel-efficient habits, the next best solution may be simply to drive less, at least for now. Is it necessary to drive to run all of your errands? Try combining tasks so you’re making fewer trips in your vehicle. If you commute every day, choose one day a week to use public transportation. If you have been carting the kids around to all their extracurriculars, see if they can carpool with their friends or go by other means.

Other tactics worth trying:

• Focus on safety to avoid accidents and limit wear and tear on your vehicle.
• Avoid going over 60 mph, at which point AAA says most vehicle’s fuel efficiency peaks.
• Lease a cheaper, less flashy vehicle if you habitually lease costly models.
• Trade in your gas guzzler for a smaller, less expensive ride.

5. Do Maintenance and Repairs in a Cost-Effective Manner

Preventative maintenance might feel like a chore, but it’s a major money-saver in the long run. Stick to your car’s service schedule for things like oil changes, brake checks, and fluid replacements. Catching problems early helps avoid big, expensive breakdowns. Perhaps you could learn to do simple fixes yourself – like changing the air filters, wiper blades, or spark plugs.

When repairs do come up, always get a second quote. Being proactive keeps your car in good shape longer, which means fewer costly surprises and a better resale value down the line.

Get a Free Quote from AMIGO Insurance to Lower Your Auto Rates

At Amigo, we know that the cost to fix or replace a vehicle can add up quickly. That’s why we help drivers access low-cost auto insurance that can still protect them financially.

Get a FREE QUOTE today and find out how much you could be saving ASAP!