Remember when trying to save on insurance that the cheapest option isn’t always the best. Your insurance provider should be reliable, and customer service should be easy to access and comfortable to speak with. Many state insurance departments and online consumer information websites offer consumer complaints sorted by insurers. These resources can help guide your decision on the right company for you. Use these 11 easy steps to reduce to cost of your car insurance:
- Use discounts.
- Compare prices.
- Stop paying for auto insurance you don’t need.
- Increase your deductible.
- Improve your credit score.
- Get an older yet reliable vehicle.
- Bundle your policies.
- Drive safely.
- Pay as You Go Insurance.
- Shop around for auto insurance before buying a new car.
- Defensive driving courses.
There are a plethora of useful discounts that would lower your insurance premiums. Check with your insurance provider to see what they offer. Here are some common discounts offered by major insurance companies:
- Homeowner Discount
- Military Members Discount
- Good Student Discount
- Hybrid or EV Discount
- Clean Driving Record Discount
- Multi-car Discount
- Pay in Full Discount
- Online Policy Discount
- Pay as You Go Insurance
- Defensive Driving Courses
According to MoneyManagement, You should try to receive a minimum of three quotes. Get quotes from different insurance companies, preferably those that operate differently. Find insurers that sell through independent agents, direct to the customer, and through their own agents. Ask relatives and close friends for their recommendations based on personal experience, and don’t commit to a company before doing your own research.
Stop Paying For Auto Insurance You Don’t Need
If your vehicle is on its way out, it’s probably time to drop your comprehensive collision coverages. Collision pays for damage to your vehicle after it’s in an accident with another vehicle, a static object, or rolls over. Comprehensive coverage pays for repairs or replacement when your vehicle is damaged by weather, animals, vandalism, or stolen outright, per RamseySolutions.
If your deductible and monthly payment add up to more than your car’s value, you should drop these coverages entirely. You will never receive more than the car is worth with comprehensive and collision insurance. If you will receive nothing or only a small amount after your vehicle is totaled, it’s probably not worth it to pay increased monthly premiums.
Set aside money you save from dropping full coverage policies for car repairs and a down payment on a future vehicle.
Increase Your Deductible
If you’ve decided to stick with your comprehensive and collision coverage, III found that you can reduce your monthly premiums by increasing your deductible. The deductible is the amount you will pay out of pocket before the insurance company will begin to cover costs. For example, If your deductible is $500 and the cost of repair is $2000, your insurance provider reimburses you $1500.
Improve Your Credit Score
According to NerdWallet, your credit score is a major player in determining your car insurance rates. Credit ratings are more impactful than driving records for certain car insurance companies. States such as Hawaii, Massachusetts, and California do not allow insurers to use credit as a factor in their prices.
Get an Older, Yet Reliable Vehicle
Some people get so enamored with all of the technology and luxuries of newer cars that they don’t factor in insurance costs for a new vehicle. Because new cars cost more to repair and replace, the cost of insurance skyrockets, and you end up paying more on insurance than you would with an older vehicle.
While the advanced safety features of newer vehicles like rearview cameras and blind-spot warning instruments will prevent traffic accidents, they can also be costly to repair. Insurance companies will often still charge higher insurance premiums for vehicles with these types of safety devices, based on their high replacement price.
Bundle Your Policies
If you have another insurance policy, such as boat or homeowners insurance, most companies will lower your rates if you bundle them together under the same insurer. Bundling is a quick way to save up to 20 percent on your insurance premiums without much work, per Investopedia. Another way to bundle is to insure multiple vehicles with one policy.
Any at-fault accidents and traffic tickets will drive your insurance rates up. When you receive a ticket, you may be offered an opportunity to take a defensive driving class in lieu of paying a fine. Taking a class will get your violation dismissed or reduce the points put onto your driving record. Taking the time to complete the course could save you hundreds in the long run.
Pay as You Go Insurance
Consider the average number of miles you drive per year. Many insurers offer a pay-per-mile or pay-as-you-go auto insurance plan. These policies will charge you based on the number of miles you drive and usually how safely you drive. Your insurance provider will install a small device in your car that tracks your vehicle usage. With this policy, you pay less for driving less.
Shop Around For Auto Insurance Before Buying a New Car
Car insurance rates are based in large part on the vehicle you drive. The price of the car, the price of repairs, its safety record, and how likely it is to be stolen determine your rates. Some manufacturers include features that reduce the risk of theft, while others have better safety ratings. Always keep the cost of insurance in mind when purchasing a new vehicle.
Defensive Driving Courses
Some insurance companies will give you a discount if you complete a defensive driving class. Some offer discounts for similar classes like an accident prevention course. These classes will not only lower your auto insurance premiums but can also lower the points on your record.
Contact your insurance agent to find out about their discounts before signing up for a driving course. Make sure you are signing up for an accredited course accepted by your insurance provider.
Saving on your auto insurance can bring peace of mind and freedom to your everyday life. A few dollars here or there really do make the difference. Insurance quotes these days are simple, easy, and can be done completely online. Head to your insurance provider’s website today to get your free quote.
Check this out if you need additional information, resources, or guidance on car insurance.
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