Due to the rising cost of vehicles, auto insurance rates are rising across the country. Unfortunately, millions of people are overpaying for their car insurance. Car insurance premiums can vary by hundreds of dollars, depending on several factors. Here are some practical tricks that will lower the insurance burden in your pocket.
Get quotes from different insurers
Insurance companies operate differently. Different insurance companies use different algorithms for calculating insurance premiums. Get about five price quotes from different insurance companies (those that sell directly to consumers, those that sell through their agents, and those that sell through independent agents).
Apart from price, ask friends for recommendations based on their experience. Review your insurance policy every year. Switching insurance carriers and choosing the right company can save you hundreds of dollars every year.
Take a Defensive Driving Course
Most car insurance companies give monthly discounts to drivers who have completed the defensive driving course. The course teaches drivers how to react in high-risk situations that cause car accidents. Taking this course will help you save more than 100 dollars every year.
Raise Your Credit Score
Most insurance companies use your credit information to price your car insurance premiums. To improve and maintain a good credit score, pay all your bills on time, never default your loan, and keep your credit balances as low as possible. Regularly check your credit record and have errors corrected to maintain an accurate credit record.
Compare Insurance Costs Before Buying a Car
Car insurance premiums vary depending on the car’s price, repair cost, and safety record. Insurance companies offer discounts to cars with safety features that reduce the risk of accidents, personal injuries, and car theft. An expensive sports car is nice, but it attracts extra thousands of dollars in your monthly car insurance premiums. Before buying a car, get insurance information from your potential insurer.
Raise Your Deductible
A deductible is an amount you pay before insurance comes in, in the event of car theft, an accident, or any other damage. Higher deductibles lower the monthly insurance premiums substantially. Increasing your deductibles from 200 dollars to 500 dollars lower monthly car insurance premiums by 15 to 30 percent. A 1000 dollars deductible saves you more than 40 percent.
Drop coverage you don’t need
The law requires you have liability insurance that pays injuries and other the damages you cause to other drivers. If your vehicle worth less than your deductibles and the amount you pay for annual coverage, it is time to drop collision and comprehensive insurance. The two do not pay more than the worth of your vehicle.
Get low mileage discounts
The more miles you drive per year, the higher the chances of getting involved in an accident. Some insurers offer low-mileage discounts to drivers who drive less than the average distance. If you carpool to work, you’re likely to qualify for this discount. If you are driving for less than 5,000 miles per year, these discounts are for people like you.
Discount for anti-theft device
Installing anti-theft devices in your car will lower some percentages of your premiums. The insurance company recommends the specific type of anti-theft devices you should install. Always consult your insurer before installing anti-theft devices to avoid using the ones it does not recognize.
You can’t move to another state because it has lower car insurance rates. If you’re planning for a move, there are probabilities that your car insurance rates will either increase or reduce. Moving to a rural area can also lower the insurance cost.
Own your car
Leasing your ride increases the cost of insurance. If you bought your car on a loan, it is still not yours. The bank owns the car. It is involved in setting the rules of your insurance policy until you clear the loan. To change the insurance policy rules, you should pay for the car on cash. If you completely own the car, you can switch from one insurance package or company to another at your wish.
You should not be paying more for insurance covers if you drive fewer miles per day. Some insurance companies are offering pay-as-you-go insurance products where drivers pay a monthly flat rate of about 40 to 70 dollars.
Research additional discounts
We have talked about discounts on some of the above tricks, but we have not exhausted all of them. Check whether the insurance company will give you a discount if you pay a six-month premium or the annual premiums at once. Also, compare prices and all discounts from other insurers.
Stop driving until you’re 25
Many insurance companies take people below the age of 25 years as standard drivers who are more likely to cause an accident. The insurance companies discriminate you for nothing, a third of all traffic accidents involve drivers below the age of 25. If you are a student and you’re driving, you can take advantage of some discounts. Some companies offer Good Student Discounts to students with good grades. Always check with your insurer or agent whether they offer such discounts and other offers for students.
There is so much to consider when calculating your monthly premiums. Statistics show that people who are married pay less monthly premiums than those who are not yet married. Insurance companies assume that married couples have kids. When you have your son or daughter in your car, you will naturally improve your driving habits because you don’t want to hurt your loved ones.
Speak to your agent
There may be other potential cost-saving tips that we haven’t included in this post. Your agent will inform you about the special offers the company has for different individuals like military personnel and people working for certain companies.
Statistics show that auto insurance prices will continue to rise in the coming years. There are many things you can do to reduce the sting, and hopefully, the above 15 tactics will help you save some dollars. All the above tips won’t work at the same time, keep them in your mind, and always apply them when an opportunity comes.