10 tips to help you save on car insurance
Very often we end up spending more on insurance policies than on ourselves. Many insurance policies, such as life, health, home and auto, are not only essential but mandatory. Auto insurance alone can cost you several hundred dollars each year.
The cost of your auto insurance premium really depends on many factors such as: your age, driving history, where you live, risk factors, and the make and age of your car. If you are concerned with style and choose a powerful car in the latest model, you will surely have to pay higher insurance. And, as you know, not having auto insurance coverage is not an option. And, if you don’t have the proper coverage and good luck isn’t on your side, you could be in deep financial trouble if you were involved in a car accident or car theft through no fault of your own.
So stop thinking about canceling comprehensive auto insurance coverage and look for ways you can have the same extensive coverage for lower costs. You can lower your auto insurance premiums by:
1. Make time to shop. Get in the exercise long before it’s time to renew your car insurance. Auto insurance premiums vary from company to company and between online payments and payments in offices or by mail. So shop around and find an insurance policy that offers a wide variety of coverage for less than what you are currently spending for auto insurance. Shop online and use the tools to get comparative quotes from different providers.
2. Thinking of increasing your deductible. Paying a higher deductible always lowers the premiums payable for auto insurance. Check your finances to see how much of a larger deductible is possible without pinching your pocket.
3. Maintaining good credit scores and reporting them always gives you a better deal with auto insurance companies. A good credit report means that your risk is lower than others, so insurance companies will be happy to offer you better rates to cover your vehicle.
4. Being green and driving a green car then you will be eligible for a great deal from the auto insurance company. Many companies have special auto insurance discount plans for environmentally conscious customers.
5. Keeping Your Mileage Low If your driver drops below, say, 7,500 miles per year, you will qualify for a low mileage discount. Qualify for this discount on your auto insurance premium by carpooling, walking instead of driving to nearby locations, and using public transportation.
6. Not using your personal vehicle for business related trips. Vehicles used for work-related driving attract higher auto insurance coverage than vehicles intended for personal use.
7. Consider a policy that covers all vehicles owned by the family. A group car policy means much lower premiums than covering each family-owned car separately.
8. Find out if your organization or membership in clubs or other professional organizations makes you eligible for a discount on an auto insurance policy. For example, most companies offer premium discounts to cover AAA member-owned vehicles.
9. If you maintain an error-free driving record for three years, you will automatically be eligible for a discount on premiums payable. No accidents, drunk driving convictions, traffic violations or breakdowns means big savings on premiums payable on auto insurance. When you have a clean driving record, it means your risk is greatly reduced.
10. Consider purchasing a car insurance policy from the same provider who has life, home and health policies extended for your family. When a company knows you well, they are more than willing to offer you car insurance at a lower price than the market price.
Other ways to lower your car insurance payment include: living away from the city in a community that has less traffic, lower accident rates, and lower crime rates, and buying a low-risk car. Sports cars and other high-performance vehicles are considered high-risk by insurance companies and attract higher insurance premiums than a truck, sedan, or compact car.
Reduce your car insurance payments by following the advice of traffic police and insurance companies. For example, installing anti-theft devices, airbags, seat belts, and antilock brakes will make you eligible for deep discounts on insurance premiums.
Therefore, instead of complaining and lamenting about high premiums, lower your car insurance premiums by following the recommendations given above and constantly staying abreast of new developments in the auto insurance industry.