Who doesn’t like to save money? Especially on a necessary expense like car insurance? Unfortunately, most consumers don’t realize they could cut their premium payments down without sacrificing any coverage. Here are ten ways you could save money on car insurance.
Get car insurance quotes online today!
Raise Your Deductible
The higher the deductible, the lower the premiums payments will be. So, if you want to lower your premiums, set a higher deductible – foolproof, right? Well, there are a few risks with this strategy. First, you have to be a safe driver. Really. You can’t be the type of driver who likes to speed, who feels some traffic rules are voluntary. Because in order for a higher deductible to make financial sense, you must remain claim free for a number of years. You want the money you saved on premium payments to exceed the deductible difference. So if you raise your deductible from $500 to $1000 and then get into an accident in a month, you just lost money. Five hundred dollars to be exact.
Second, you want to make sure you can afford the increased deductible. If you are the type of person who lives paycheck to paycheck, then this is not an advisable strategy. You don’t want to have a deductible that is more than you can afford to pay at any one time. Accidents do happen and you want to be able to afford your deductible.
Drop Coverages On Older Vehicles
It doesn’t make sense to insure a vehicle for more than it is actually worth. For example, let’s say you have a Ford Escort that is ten years old. You have full coverage on the vehicle. One day during a daily commute the vehicle is totaled. No problem, the insurance company cuts you a check. But to your surprise the amount is only for a scant $1500. The reason is that the insurance company will only pay for the current market value of the vehicle, no matter how much you originally paid for it. Considering this, it is not wise to fully insure a vehicle that is only worth a few thousand dollars. In fact, during the course of only one year’s time, you may have paid more in insurance than the current market value of the car.
Pay Your Premium Once A Year
Car insurance companies have surcharges for monthly premiums. If you can afford it, try paying the premium once or even twice a year. This way you will avoid these surcharges, which can add up over time.
Get A Copy Of Your Credit Report
What does your credit report have to do with your car insurance? Quite a bit, actually. Insurance companies factor your credit history into your premium. The reasoning being that customers with a poor credit rating are motorists who are more likely to file claims. Thus, it is prudent for you to request a copy of your credit report. There a number of agencies that offer this service for free. In fact, federal law allows you to get a free copy of your credit report once a year. Once you obtain this copy, make sure that it is free of errors. If there are inconsistencies, clear them up immediately. You would be surprised how much of a difference an error on your credit report can make on your insurance premiums (not to mention when you are trying to get a loan).
At the same time, you need to make sure you are punctual with all of your bill payments. Late and missed payments can lower your credit rating which among other things will lead to higher car insurance bills.
Inquire About Discounts
Car insurance companies offer a wide array of discounts. From everything from being a good driver to being married, there are a number of good discounts that you may qualify for. Check out our article to see what might be available.
Drive Less
There is a reason why insurance companies ask you how many miles you drive annually. The more you are on the road, the more chance you have of filing a claim. So, if you reduce the amount of time you are behind the wheel, your premiums will go down. Besides the affect driving less has on your insurance rates, you will see other benefits. You will save at the gas pump and may decide to bike and/or walk more, which could improve your overall health. No matter how you look at, less time behind the wheel is a good thing.
Get The Latest Safety Features Installed
Safety features, such as anti-lock brakes and airbags, help reduce the amounts of claims. Therefore insurance companies award motorists who have vehicles equipped with these features with lower premiums. The same goes for anti-theft devices. A car alarm system can help your premium payment not to mention safeguard your automobile.
Park In A Secure Garage
Where you park matters to insurance companies. A secure area, like a garage with a locked door, helps reduce the chance of your car being stolen. As you probably know by now, when there is a reduced chance of a claim insurance companies will lower their rates.
Bundle Your Insurance Coverages Together
Having all of your insurance coverages under the same insurer often leads to reduced premiums and to discounts. If possible, try to combine your insurance needs: health, life, home and auto under the same insurance company.
Shop Around
Different companies offer similar coverages for vastly different rates. The only way to discover the cheapest rates possible is to shop around. The easiest way to do this is to get online quotes from several auto insurance companies. And there is no better way to get a way quote than to use the quote comparison tool here at like Cheap Quotes Car Insurance. The quotes are free, it takes only a few minutes, and you can get as many quotes as you desire. Looking to cut back on car insurance costs? Getting multiple car insurance quotes is perhaps the most effective technique. Start by entering your zip code in the box below.