10 Tips for Cutting Car Insurance Costs- With the increasing rates of car accidents, automobile insurance rates tend to rise every year. It could be very financially draining when you are paying lots of money on car insurance annually. However, are there ways that you can save on car insurance? Yes, there are.
10 Tips for Cutting Car Insurance Costs
There are some strategies that you can reduce your car insurance rates. Below, you’d find ten helpful tips for cutting car insurance costs.
Shop around and Compare Rates
If your auto insurance premium keeps going up every year, then it’s high time that you shop around and get quotes from different insurers. As auto insurance rates vary from company to company, you’d get different prices from each company.
That way, you can make comparisons and get another auto insurance coverage at a cheaper rate. However, do not shop for another auto insurance provider by price only. Also, make sure that you check for the financial strength of each company.
This is because some auto insurers could offer coverage at a cheaper rate but might not be able to pay for insurance claims. Hence, you should shop around carefully, so that you don’t end up losing in the end.
Take a Defensive Driving Course
Some insurance companies give discounts to people who complete a certified defensive driving course. Completing a defensive driving course is a way to improve your driving skills, and this could lower the risks your insurer has to cover.
So, this could be another way for you to save on car insurance. However, before you sign up for a defensive driving class, make sure you ask your auto insurer if you could get a discount that way.
Raise Your Deductible
One way to lower your auto insurance cost is to increase your deductible. This is the amount you are expected to pay first if any damage is done to your car before your insurer kicks in.
The higher your deductible, the lower your insurance premiums will be. Hence, by requesting a higher deductible, you could be saving lots of money back in your pocket annually. So, if you have a clean driving history or a stable emergency fund, this could be the best idea for you.
Practice Safe Driving
If you always get into accidents while driving, you’d always cost your insurance company a lot of money. This could make your premiums go up when it is up for renewal. Hence, you need to practice safe driving.
Whenever you are on the road, stay focused and be mindful of the people and other cars around you. This could go a long way to help you avoid accidents and events that could raise your insurance rates.
Consider Multi-Car Discounts
When you take advantage of multi-car discounts, you could also lower your auto insurance rates. Some insurance companies allow two or more people to jointly pay an annual insurance premium for a car.
However, these people should jointly own the vehicle. Also, this is only possible if they live in the same residence and are related by blood. To see if you get this type of discount, contact your insurance agent.
Bundle Your Insurance Policies
Bundling all your insurance coverages is another approach to cutting car insurance costs. If you have other types of insurance policies like homeowners, pet, and, more, from a single insurer, you can bundle them all. That way, you’d be able to get a discount and save some money back from your pocket.
Check for Additional Discounts You Qualify for
Also, insurance companies offer discounts to their customers. These discounts are of various types and vary with the insured. If you are a long-time customer, have a defensive driving course, are a good student, or have no record of moving violations, you could be qualified for discounts. You can contact your insurance provider to know the discounts you are eligible for discounts.
Use Anti-theft and Protection Devices
Also, this is another way that you can cut down your auto insurance premium. You can ask your insurer if you qualify for discounts if you install anti-theft and protection devices in your vehicle. These devices will help to reduce theft and accident risk, and your insurance company could considerably consider you low risk.
Establish a Good Credit Score
Having a good credit score could cut down your auto insurance costs considerably. Most insurers use the credit information of the insured to determine the price of their auto insurance. Also, it is mostly believed that people with good credit scores tend to make fewer claims.
Hence, when you have a good credit score, it could lower your auto insurance rates. To have a good credit report, pay your bills on time and avoid huge credit card debt.
Review Your Auto Insurance Coverage
As no one can predict when an accident will occur, it is not advisable that you reduce your auto insurance coverage. However, you can review your insurance coverage and see if there is anyone you drop.
However, this could only make sense in some cases. For instance, if you are riding an old vehicle that could be totaled when an accident occurs, there could be no need for you to take both comprehensive and collision coverage. You can decide to drop one to save yourself some costs on auto insurance rates.
What are the Factors that Impact the Car Insurance Rates?
Several factors affect the price of auto insurance. The main factors that affect the cost of automobile insurance are
- Driving history
- Insurance history
- Annual mileage
- Credit score
- Age of the driver
- Years of driving experience
- Type of vehicle.
What are the Main Types of Car Insurance?
There are different types of car insurance. However, the two most common ones are liability, comprehensive, and collision insurance respectively.
What Gender Pays Most for Car Insurance?
Generally, males pay for auto insurance more than females. Moreover, the difference in the insurance rate is slightly higher. However, it is more pronounced for teenagers and young adults.
Does Car Age Affect Insurance?
Yes, it does. The older a car gets, the lesser its value will be, and the lower its insurance rates. This means that if your car is old, you might not pay a high annual auto insurance premium.
What Makes Car Insurance Go Up?
Frequent car accidents and traffic regulations are the two common reasons why car insurance rates go up. However, other factors could also contribute to this. They include the age of the vehicle, the number of claims you file, and the ZIP code.