Car insurance can be one of the biggest expenses when it comes to owning a car. But the good news is that there are many ways that you can try and get your auto insurance policy as cheap as you can by doing a little shopping around. Wherever you live, you can rest easy knowing that there are lots of tips out there that even pro drivers aren’t aware of. Today, we’ll break down the top ways you can get the cheapest auto insurance possible.
Bulk Rates for Multiple Cars and/or Drivers
If you receive a quote on your own from an auto insurance company for a single vehicle, they might stick you with a higher quote per vehicle than if you asked about insuring several drivers or vehicles. This is because most insurance companies want your business, and they want to make their offer as attractive as possible by using a bulk rate. In most cases, they will be willing to offer you a deal if it means you’ll bring in more business.
To qualify, multiple drivers will usually need to live at the same address and be blood-related or related by marriage. Unrelated people can also get a discount if they own a vehicle together.
In addition to that, some insurance companies might offer you a discount if you bundle other types of insurance in with your auto insurance such as your home insurance.
Usage-based insurance, also known as telematics, is an insurance policy that is based on the kind of driving that you do rather than what an insurance company thinks you do. UBI policy holders can enjoy up to 25% saved off of their yearly premiums. UBI is a good option for those deemed a higher risk, like those residing in big cities, young drivers, etc, since they can see even bigger savings.
Always Shop Around
The most important tip is to shop around for your auto insurance policy. Never go for the first quote that you receive. Shop around for an insurance policy when you first get one, and also when your policy is up for renewal. There is no reason not to look around, and in a year you never know how much your situation has changed and can lessen your rates. Also, some insurance companies will offer discounts in order to retain their customer or attract new ones so you should be on the lookout for these. You can always check insurance comparison websites if you don’t know where else to look. You can also check with your same company to see if they offer loyalty discounts. You can also ask your insurance broker to see if they can find you any better rates. There’s always not a guarantee that you will find a company with a better deal, but it never hurts to try and it’s worth it in the long run.
Being a Safe Driver Can Save You Money
Being mindful when you drive will allow you to avoid accidents that can cause your premiums to skyrocket. Many insurance companies offer safe drivers discounts that can be between 10% to 25% depending on what your driving record looks like. The more points that you have, the higher your policy rate will be. Points are what you are given when you receive certain types of tickets, like speeding tickets.
Having a Safety-Rated Car Can Reduce Your Premiums
The safety rating on your car has an impact on your insurance premium as well. Automobiles that have a great safety rating and crash test rating as well as a low-theft score usually have cheaper rates. The less sport and attractive a car is, the better for your insurance policy. You can decide whether or not the trade-off is worth it.
Switch Up Your Policy
You can always go back and change certain aspects of your insurance coverage that can help you save money on your payments. For example, you can cancel collision coverage, increase your deductible, or opt for minimal coverage. If you can make these types of changes you can see some significant savings. The only drawback is that you will be lowering your coverage when you might need it for the future.
Enroll in a Defensive Driving Course
In some cases, insurance companies will give you a discount for those who complete an appropriate defensive driving course. You might also be able to reduce the number of points that you have on your driving record by doing this. Make sure to ask your insurance broker or company about the class you are taking. You will want to make sure that the time and money to do it was worth it in savings on your insurance. Be sure to sign up for a course that is accredited.
Go With A Higher Deductible
If you are able to, going with a higher out-of-pocket deductible will let you save on your insurance premium.
Use an Annual Payment Rather Than Monthly
You can save quite a bit of money if you opt for an annual payment instead of monthly payments. This is because by doing so you will be saving your insurance company administrative costs associated with billing you each month. You will have to provide more money upfront, but these savings can help in the long run.
Keep Your Record Up-to-Date
Sometimes your insurance company will not automatically update your record or match your rates to an updated driving record. They might only do so each time your policy is up for renewal. This is the reason why you can find better rates when you shop around, because these other insurance companies will be using your most up to date info. You can usually call up your insurance company and let them know about your clean record, dropped tickets and accidents and your better license level, to name a few things.
If you’re looking to save money on your car insurance, there are so many potential ways that you can try and achieve that. These will all centre around reviewing your life and driving record, or changes to your driving habits to see what potential discounts you can get. Most importantly, you should always be shopping around!