There are numerous ways to save some bucks on car insurance. Everyone wants to cut back on their annual premiums, right? In a previous article, we told you five ways in which to reduce your car insurance payments. Well, the savings don’t end there. Here are five more ways that you can save cash on auto insurance.
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Install The Latest Safety Features
Car insurance companies love safety features. These features have been proven to reduce auto insurance claims. When claims are reduced, rates are reduced and everyone wins.
If you driving an older automobile, most likely you don’t have the most modern safety equipment installed. This is something that you should look into correcting. There are two advantages to getting a device like anti-lock brakes installed in your vehicle. One, your daily commute will be much safer and the chances of getting into a crash will drop. Second, the auto insurance premium will be discounted, and the money spent on the safety device will be recovered over time. In a sense, the safety equipment will pay for itself.
Obey All Traffic Laws
The obvious advantage to obeying all traffic laws and regulations is that that you will avoid receiving any traffic tickets. Of course, traffic tickets aren’t cheap, so right off the bat you are saving money if you are prone to having a lead foot.
Besides saving on traffic tickets, having a spotless driving record leads to significant car insurance discounts. Safe, law-abiding drivers have less of a chance of getting into a car accident and filing a claim. Auto insurance companies like to reward these drivers with lower rates. So, if you too want to enjoy low car insurance rates, do what a safe driver does – obey the law.
Clean Up Your Credit
Maintaining a high credit rating would seem to have very little to do with car insurance. Sure, having a good credit rating is important when applying for a loan, trying to rent an apartment, and even when submitting a resume to prospective employer. And it also matters in the world of car insurance.
Statistics have demonstrated that drivers with a higher credit rating are less likely to file an insurance claim. Auto insurance companies look for any and all sorts of indicators when trying to establish the likelihood of a driver having to submit a claim. Since there appears to be a correlation between a motorist’s credit rating and their driving habits, auto insurance companies scrutinize your credit rating.
Want to pay less for car insurance? Get your credit report (you are allowed one free report a year from the three major credit reporting agencies), and check for errors. If there are inaccuracies on your report, correct them immediately. Establish good financial habits; pay all your bills on time. Something as simple as making a credit card payment by the due date can lead to serious savings on car insurance. If that isn’t an incentive, what is?
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Don’t Pay Your Premium In Installments
You can save money if you pay your premium in one lump sum, rather than a series of monthly installments. Auto insurance companies attach “fractional premium” fees if you choose to pay your premium in installments. If you can afford it, trying purchasing your auto insurance all at once (which can be once a year or once every six months, depending on your insurance policy)
Reduce Your Medical Payment Coverage
Most states have basic limits of what you need to carry for medical payment coverage. Medical payment coverage usually comes in two forms: Medical payment and personal injury protection. These coverages protect you in case you cause bodily injuries in an accident or if you are injured in an accident. These are very important coverages; after all, medical bills can be extraordinarily expensive. Why would we suggest that you reduce this coverage?
In some cases, this medical coverage is redundant. For example, medical insurance and disability insurance may offer all the protection you need against the losses you may sustain because of an accident. Look into the other medical related coverages that you currently have. Are you doubling up on insurance? If so, our recommendation is to reduce your medical coverage to the basic limits of liability for your state. However, do not do so until you are absolutely sure that you have this coverage with other insurance policies.
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