Car insurance premiums are essential for car owners. However, this doesn’t mean they’re free from problems. While they do offer numerous benefits, especially in times of accidents or damage to your automobile, they can become immensely heavy on the pocket due to the hefty premiums.
Although there is no way to avoid purchasing car insurance altogether, there are ways you can reduce your costs and curb your expenses. In this article, we’ll look at nine super-easy ways which can make you savings, while also giving you the protection of a top-notch insurance policy.
1. Take advantage of car insurance discounts
Car owners are provided numerous discounts on auto insurance these days. To make sure you’re getting all of the discounts you’re entitled to, ask your agent to go over all your discounts available for possible savings.
2. Take the time to shop around
Car insurance varies by hundreds of dollars per year among insurers for the same levels of coverage. Get quotes from a few companies to make sure you’re getting the best deal. Who knows, you may make the most massive savings if you do so.
You may want to ask friends and relatives for their recommendations based on their experiences with their insurance company.
Make sure that anyone you speak to takes the time to answer your questions in an informative manner. Remember, these are people you’ll rely on if something happens, and you need to make a claim.
Realize the lowest price isn’t always the cheapest option. You’ll want the company you choose to have a good reputation, and that you are happy with the service you get from insurance professionals you speak to. More importantly, they will help you in any way they can if you need to put in a claim.
Also, remember to compare quotes based on your situation. Just because an insurer offers several discounts doesn’t mean it provides the lowest overall price.
3. Compare the maintenance and insurance costs of various car models before purchasing your vehicle
Auto insurance premiums are based on the car’s price, the cost to repair it, its overall safety record, and the possibility of theft.
A luxury car like a Mercedes will have higher-priced insurance attached to it, purely because of how expensive any repairs or parts replacement will cost. Similarly, an inexpensive vehicle will have lower insurance expenses because their repairs are more pocket-friendly.
If you want to ensure your car insurance costs remain low. Calculate and compare the maintenance, repair, overall safety record and insurance expenses of different car models, before actually purchasing a new car. This way, you can make a knowledgeable purchase.
4. Choose a higher deductible
Your car insurance deductible is the amount of money you have to pay toward repairs such as an auto accident or car damage before your insurance covers the rest.
For example, if you’re in an automobile accident that causes $4,000 worth of damage to your vehicle and your deductible is $500, you will only have to pay $500 toward the repair and the insurance provider pays the rest.
This is an excellent way to reduce car insurance costs but, make sure you have enough money set aside so you can cover the higher deductible if you need to submit a claim.
5. Drop optional car insurance you don’t need on your older car
If you’ve got an old car, it might be time to drop collision and comprehensive insurance, which pays for damage to your vehicle.
Collision coverage will pay to repair damage to your automobile if in an auto accident or crashes into an object. Comprehensive coverage pays if your vehicle is stolen or damaged by storms, vandalism, or by hitting an animal such as a deer.
If your vehicle is worth less your deductible plus the amount you pay for annual coverage. Well, then it’s time to drop them.
Collision and comprehensive will never pay out more than what your vehicle is worth. Estimate whether it’s worth paying for coverage that may or may not reimburse you for fixing your vehicle.
6. Work on your credit history
While the connection between your credit score and your car insurance isn’t apparent, it’s important to know that your credit rating does have an impact on the premium price you’re quoted on your car insurance.
Insurance providers often view applicants with poor credit scores as high-risk. Research has shown that people who effectively manage good credit make fewer claims. So, if need be, work on improving your credit rating before you apply for car insurance.
7. Bundle your insurance if at all possible
Almost all insurers give you a discount if you purchase two or more types of insurance from them. People tend to bundle homeowners and auto. Or they have more than one vehicle insured with the same company.
8. Shop for low mileage discounts too
Some companies will offer discounts to motorists who drive less than the average number of miles per year. Because the general rule among insurance companies is that driving less means lower premiums.
If you’re such a driver, then it doesn’t hurt to contact your insurance company for an accurate assessment. But realize that you will have to provide proof of your driving history because they will not take your word for it.
Also, keep in mind that what’s important is not only the final cost of your policy but the reputation of the insurance company too.
9. Become a mindful driver and drive safely
Finally, the best way to keep your auto insurance costs low is to become a safer and more mindful driver.
Insurance companies study your driving history to understand how much of a risk you pose. If you have accidents on your driving record or DUIs and speeding tickets, you will be considered a high-risk driver. This will automatically rake up your car insurance costs.
