Auto insurance is an expensive nuisance that continues to rise due to the litigious nature of our society and increase of car prices. The bad news is, as much as insurance cost won’t decrease any time soon, it is a must for car owners. However, by knowing exactly what affects your auto insurance, you can figure out ways to minimize increases and reduce the financial burden that come with paying auto insurance and get good coverage.
Here are some of the essential ways to lower your auto insurance costs.
Insure multiple cars and/or drivers
The cost of insuring a single vehicle is higher than if you insure several drivers or cars with the insurance company. Most insurance companies offer a bulk rate because they want to work with your business. Sometimes they are willing to offer you a good deal if it means you are taking more auto vehicle insurances. When looking for an insurance company like Duliban Insurance, ask the agents to see if you qualify for multiple driver insurance cover. Generally, to qualify the drivers must be from the same residence and must be related by blood. Two unrelated people may also qualify if they jointly own the vehicle. Expect to pay more insurance if the driver is a teen.
In addition, some insurance companies offer discounts if you have other policies with them such as home insurance.
Increase your deductibles
Generally, a deductible is the amount of money you will have to pay before the insurance chips in in the event of theft, fire, accident or any other types of damage to your vehicle. Deductibles range from about $200 to $1000. The catch is, the lower the deductible, the higher the annual premium. Conversely, the higher the deductible the lower the annual premium. Ask your insurance agent how much premium might be affected if you raised your deductibles. A study shows raising your deductibles from $500 to $1000 can save up to 9% of the annual premium. If you find it difficult to file for a smaller claim, it is sensible to raise your deductible to avoid the risk of pushing up your premium.
Consider the cost and type of car you buy
The type of car you drive has a huge significance to your insurance premium. Owning a sleek and classy sports car might sound exciting, but insuring an expensive and top-of-the-line vehicle can be more expensive than insuring a smaller and low cost commuter car. A recent study on the least and most expensive cars to insure show that annual premium for small cars range from about $1200 to $4,000 for large and expensive vehicles. Large and expensive cars are expensive to insure.
Some insurers also offer reasonable discount if the vehicle is a hybrid or uses alternative fuel. You can protect the environment and save money on the insurance in the process. It is vital to find out the insurance rates for different cars before buying a car.
Work on your credit ratings
Your credit history is a vital factor in determining auto insurance premiums. Studies show that there is a significant correlation between how we handle finances and claims history. The credit ratings show whether you are responsible in your personal life. The more responsible you are, the less likely you are to file a claim. Therefore, if you have good credit history you might just be lucky enough to have lower premiums. It is important to keep a high credit rating.
If you are renewing your auto insurance, shop around the market and obtain quotes from competing companies. Getting quotes from different insurance companies gives you a general view of the varying benefits and premiums. It is essential to remember that cheap doesn’t always mean good and going with a lower-priced insurance company is not always the best decision. You should consider the insurer’s creditworthiness.
Consider a defensive driving course
You can enjoy meaningful discounts if you have completed an approved defensive driving course, accident prevention course or any other course. Ask your agent or insurance company about this discount before you sign up for a class. It is important to ensure your insurer offers the discount so that the cost of the curse can translate into a big insurance savings over time. It is vital for the driver to register for an accredited course.
Review comprehensive coverage
Related to deductible, you can also save money by reducing or reviewing your coverage with time. If the car is on its last legs, it makes sense to drop collision or comprehensive coverage. This is because in such cases, the premium you pay on collision or comprehensive coverages may be higher than the value of the car itself, and the insurance company will most likely reimburse the value of the car in case of a loss.
Being a safe driver is one of the best ways for you to reduce your insurance cost. The more mindful you are, the more accidents and violations you avoid. If you have several auto insurance claims, the insurance company will definitely offer you a higher premium because you are going to cost them a lot of money. Some insurance companies offer between 10% to 20% discount depending on your driving record.
Pay by the mile insurance
If you are a safe, low-mileage driver, a black box insurance (usage based insurance program) is a great option to help you save on insurance cost. This program allows the insurer to track your driving using a telemetric device installed in your car in exchange for discounts based on how much you drive, when you drive and how well you drive. If you drive for fewer miles, for instance less than 10,000 miles, you can be able to save money with the pay by mile program.
Get rid of coverage you may not need
You may not need all the components of a policy, such as car rental coverage and roadside assistance. It is important to carefully go through your insurance policy line by line and ask your insurer about removing certain elements that you do not need.
Auto insurance is a necessary evil. Insurance protects us from losses that we could otherwise handle financially. The cost of auto insurance is likely to continue to rise. The tips mentioned above should help you reduce costs on your insurance policy.