Money Management

Even good drivers get tickets sometimes, and there are some options for lowering your premiums if it happens. Read on to find out how. 

A few weeks ago, my wife was driving on a road she frequently navigates, but one thing was different: School was back in session.

She’s a slow, cautious, non-aggressive, and safety-conscious driver, but she found herself accidentally going over the speed limit in a school zone. Blue lights followed, and a speeding ticket was issued.

Over 9% of drivers had a speeding ticket on their driving record last year, and when you get one, they often come with points — not as fun as it sounds — that can stay on your driving record for years.

The more points you have, the more your car insurance can go up.

My wife has a great driving record, and mine is really good, too, so our insurance isn’t as high as it could be. But with her recent ticket, our rates could go up. Progressive Insurance says that car insurance rates are 15% higher for a six-month policy for people who have gotten their first speeding ticket in three years.

If that happens to us, there are a few things we’ll likely do to improve our rates.

1. We’ll take a defensive driving course

In some states, taking a defensive driving course can give you a discount on your auto insurance. The courses can be as short as just a few hours, and you can receive a discount of 5% to 20% on your premium.

Fortunately, insurers in South Carolina offer a discount when you complete the course. The course is eight hours long in our state, reduces the points on your driving record, and can be taken once every three years.

2. We’ll look into a telematics tracking discount

Some auto insurance companies offer discounts to customers who install a telematics device in their vehicle or download a mobile app that tracks certain driving habits.

If this sounds a little invasive, I get it. But some auto insurance companies offer a discount to drivers when they can look at the driving data and assess that a driver is generally safe on the road — and it can be a significant discount.

Allstate’s DriveWise app tracks driving habits like braking and acceleration, and if the data shows you’re a really safe driver, you can receive up to 40% off of your car insurance.

But there’s also a downside: Your rate can go up if DriveWise determines you’re a risky driver. I don’t expect that outcome with my family, but you may want to keep that in mind if you sign up for a telematics tracking service with your insurer.

3. We’ll shop around for car insurance quotes

While all car insurance companies can see my wife’s ticket on her record, that doesn’t mean I can’t find cheaper insurance from another company. According to the Bureau of Labor Statistics, car insurance premiums have soared 19% over the past year, so it may be worth looking at other options.

Each car insurance company has its own set of discounts and compiles its own information for determining how much to charge for their insurance. In general, all insurance companies will consider your age, driving record, credit score, vehicle, and which state you live in.

Seeing your car insurance rise is never fun, but you don’t just have to pay what your insurance company quotes you. Applying for discounts and shopping around for the best car insurance company could help you save money on your premiums.

All of that, and watch out for those school zones.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Do you fly with Southwest and like saving money? This Costco gift card deal could save you $70 on a future flight. Find out how to shop this limited-time deal. 

Flights are a travel expense that can quickly make any vacation costly. Even if you budget accordingly and buy your tickets well in advance, you may have to spend more than you’d prefer. But Costco has a deal that could help some travelers save money on flights.

The warehouse club sells discounted gift cards to its members. Costco has a limited-time deal for travelers who fly with Southwest Airlines. You can get $70 off an electronic Southwest gift card through Oct. 13. But the offer is only available while supplies last — so don’t miss out.

You can get a virtual $500 Southwest gift card for only $429.99

If you’re a Costco member who plans to book a Southwest flight soon, you may want to consider waiting until after you buy an electronic gift card from Costco. The retailer is selling discounted virtual Southwest gift cards through Oct. 13 — but only limited quantities are available. You can get a $500 electronic gift card for $429.99 while supplies last by shopping on Costco’s website.

There’s a limit of two gift card purchases per Costco member, and they are non-refundable. After completing your purchase, your virtual gift card will be delivered by email. You can redeem it online at Southwest.com, a Southwest ticket counter, or by calling 1-800-I-FLY-SWA. Since there is no expiration date, there’s no hurry to use the gift card right away.

If you’re a regular Southwest flyer, buying a gift card while this deal is active could be a wise personal finance move. Everyday costs, including airline tickets, are high right now, and by finding ways to save money with deals like this, you can keep more money in your checking account.

Not yet a Costco member? You can shop this deal without a Costco membership, but you’ll pay more than $429.99. Non-members pay a 5% surcharge when placing orders online.

But by becoming a Costco member, you can get an even better price.

If you’re unsure whether it’s worthwhile to join, here are some little-known perks of a Costco membership. For many households, a warehouse club membership can prove to be valuable. A Costco membership could help you save money on groceries and other everyday expenses.

Don’t ignore rewards credit cards

In today’s expensive world, $500 doesn’t go far when buying airline tickets. If you find yourself booking multiple tickets or spending more than $500 after using your Southwest gift card, pay the remaining balance with a rewards credit card. You can earn points, miles, or cash back when you spend money with your credit card. It’s like getting rewarded to shop.

Airline credit cards are another option to explore if you travel frequently. If you’re a Southwest loyalist, you may want to consider adding a Southwest credit card to your wallet. You can earn Southwest Rapid Rewards points when you pay with your card and get extra benefits like free EarlyBird Check-Ins. Check out our list of the best Southwest credit cards to find out more.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

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