Having good car insurance is a smart life decision. However, there is no denying how much it adds to your overall driving expense. With car insurance rates set to increase, it is an apt time to consider smart ways to save money on your auto insurance premiums.
There are several smart and practical ways you can consider to keep your auto policy expenses in check. Don't just pay your insurance bills without assessing the value you are getting in return. Review your policy against these 7 tips and see how many hundred dollars you can save on the policy.
There is a lucrative discount that comes with buying two or more insurance types from the same company. For example, bundling your renter's or homeowner's insurance with your auto insurance policy effectively reduces the amount of premium paid for the auto insurance coverage.
Moreover, if you decide to insure more than one vehicle, you may also be eligible for a price break with certain insurance companies. That said, make sure you do some due diligence and weigh the benefits of a multi-policy coverage from a single insurance company versus purchasing the insurance separately from different companies.
Most states rely on your credit score to determine your car insurance premium. A credit-based insurance score analyses certain aspects of your credit history to determine the likelihood of an insurance loss. The weightiest elements used by many auto insurers are the quantity of your outstanding debt as well as a history of on-time payment.
That means a person with an excellent credit score will pay a lower premium annually compared to one with a poor credit score because they tend to make fewer claims. Ensure you are regularly apprised on your credit record to make the most of it.
Auto insurance is all about your vehicle's safety and the more you lean toward that, the more you are likely to impress your insurer. This is especially the case with older cars. Equipping your vehicle with extra safety features such as the antilock braking system, automatic seatbelts, and an alarm system can potentially lower your insurance premiums.
However, before installing any of these game-changing safety features, determine if they are worth the installation cost. Antilock braking systems are that influential because of their proven effectiveness in mitigating automobile accidents by enhancing vehicle control.
Increasing your deductible on your auto insurance is an effective strategy to lower your premium rate faster. The deductible essentially means that should any loss occur, you are responsible for the coverage out of pocket. Even though this will cost you more in the event of a claim, you end up saving a lot more in the long run.
Therefore, before raising your deductible, ensure you are comfortable with the higher deductible amount should you ever need to make a claim. This provision is also flexible and you can always revise the amount if it feels too high to manage. When shopping around for insurance policies, be sure to ask about the deductible options available.
Shopping around is worth your effort because policy prices differ from company to company. While it is tempting to stick with a particular provider, the rewards of comparing prices are far greater. Gather multiple quotes from different insurers to become a more informed negotiator as well as get a good picture of what you should expect to pay.
Before committing to any particular insurer, perform thorough due diligence to be sure of what you are getting into. You can also reach out to friends and family for viable recommendations or check customer reviews online. Make sure you end up with a reputable company because this is an insurer you will rely on when the worst happens and you need to make an urgent claim.
Check with your insurer to see whether you qualify for any discounts on your auto policy. Some companies monitor your driving habits through a car tracker installed in your automobile and can reward you with 'good driving' discounts by lowering your premium.
Furthermore, taking defensive driving classes also guarantees some policy discounts because the insurer views you as a safe driver. If you can avoid tarnishing your driving record through accidents and speeding tickets, you are in for some discounted treats on your auto insurance. Each year of safe driving earns you some extra credits.
Some auto insurers provide extra discounts for vehicles with low annual mileage. So, the less you drive your car the more you can expect to save on your car insurance. Some of the healthy alternatives to consider are walking, cycling, or carpooling to work, bundling your errands, and using public transport.
Driving your car less means minimal accidents, reduced wear and tear and saving more on gas bills. With the current state of lockdowns, you can also choose to work remotely and minimize your driving.