If you own a car, then having a car insurance is an obligation. It comes as an addition to your expenditure. However, there are ways you can lower the amount of insurance premium you will pay. Knowledge is power and knowing what affects the rate of insurance premium you’ll part with and ways to reduce it, will save you hundreds of dollars annually if not monthly.
1Shop for the Best Policy
Don’t make a stop and get an insurance coverage at the first insurance company you come across. Take time to review several insurance companies and scrutinize what each is offering, and the deals they offer. Compare like for like covers and policies that suit the type of car you are driving. Compare three to four car insurance companies before making up your mind. Simply use a free online service to quickly compare auto insurance quotes and find the best rate! You can consider enlisting the assistance of an independent agent to guide and to show you the tricks and tips on getting the best deal around. Independent agents are beneficial as they do not benefit in any way by selling a policy. They give an honest opinion and based on their experience since they now the ins and outs of the car insurance industry. Company reputation and customer satisfaction rating is also another point to consider aside from the prices.
2Increase Your Deductibles
Another way of saving on car insurance is raising your deductibles. Deductibles are the amount of cash deducted from your insurance contribution. Higher deductibles result in lower premiums. Increasing your deductibles will enable you to assume more of the risks for small claims. For instance, raising your deductibles from $500 to $1000 on collision and comprehensive coverage can save you up to 40 percent or even more. Just make sure you choose limits that you can comfortably pay in the event that an accident occurs and you need to make a claim.
3Drive Safely and Maintain Your Car
Safe driving and keeping your car in good working condition also saves on insurance. Follow the vehicle’s manufacturer’s maintenance instructions. Additionally, avoid getting caught in any traffic violations or at-fault accidents. Traffic violations and poor vehicle maintenance increase insurance premiums significantly. Even if you were a smart negotiator and got excellent rates and discounts, careless driving and accidents would still raise your premiums. Remember to obey traffic rules, drive safely and keep your car in the best working condition you can.
4Get Insurance Discounts
Before you accept an insurance premium rate, ask the company about the discount and deals they have on offer. Several insurance discounts vary from region to region and companies. Most insurance companies offer discounts for;
- Safe Driving
- Multiple Policies
- Good Grades
- Anti-theft equipment
- Having A Good Credit Rating
- Low Annual Mileage and Long-Term Policy Loyalty
5Get the Right Car
Lastly, take note that there is no one policy fits all concept when it comes to car insurance. Insurance premium rates depend on the type of car you are driving. So, if you are in the market to shop for a new car, consider the model and performance. The fancier the car, the more insurance premium you will pay. Fuel guzzlers and high-performance cars also attract higher premiums. Before you shop for your next car, check the vehicle’s insurance rates. However, if you are looking to get a fancy car, then use the tips ways mentioned above to save money on insurance.
Saving on car insurance requires knowledge and thorough research. Combining the tips above will help you to trim the amount you pay, and you will be better off especially in the long-term.