Tired of high car insurance costs? Save hundreds per year by following these 12 steps.
1. Bundle your policies
2. Drive safely
3. Raise your deductible
4. Arm your car
5. Compare quotes
6. Lower your coverage
7. Drive less
8. Buy a safer vehicle
9. Speak with an agent
10. Work on your credit
11. Choose residences wisely
12. Insure multiple cars
If you have car insurance in addition to home, boat, or any other type of insurance policy, you may be able to save money by bundling your policies together with the same company. Most insurance companies these days offer substantial discounts: the more you bundle, the more you can save.
It sounds obvious, but the fewer violations, claims, and accidents you have on your record, the better insurance rates you will be offered. Since it costs more to insure a driver with a bad record, you end up eating the additional cost. Consider taking a refresher course in driver’s safety.
Depending on what you can afford to pay out of pocket in the event of a claim, you may be able to raise your deductible and thus lower the cost of your insurance. Just make sure you do not raise it to the point you cannot afford to pay it if needed.
If your vehicle does not already come equipped with an alarm system or some other kind of security system that deters theft, you may want to consider investing in one. These typically cost just a few hundred dollars with installation, yet can save you hundreds per year on your insurance costs.
It is generally recommended that all drivers take the time to shop around for auto insurance policies once every twelve months. This way, you can compare quotes and make sure you are getting the best deal.
If you want to reduce your insurance premium, you may want to consider lowering your overall coverage amounts. Of course, keep in mind that this will affect your potential reimbursement or payout in the event of a claim. Only lower your coverage after careful consideration and never lower below required minimums.
One factor insurance companies use to determine how much your premium will cost is the total number of miles you put on the vehicle per year. The more you drive, the higher the risk of a claim, and the higher the cost. Consider walking, taking transit or carpooling to save miles on your car.
When it comes time to buy your next car, make sure it has the highest possible safety ratings you can afford. This will reduce the cost to insure the car and save you money down the road while giving you additional peace of mind.
If you feel like you are missing out on savings and discounts or if you have found a cheaper policy elsewhere, speak with your agent before dropping your insurance company to see if he or she can work with you to reach a lower rate.
The lower your credit score, the more your insurance company will charge you. Take steps to improve your score, such as making timely repayments on debt, to ultimately lower your insurance costs overall.
Most people do not realize that the city where they park their cars at night influences their insurance costs. By living in a city with less crime, you can enjoy lower insurance costs. Living in a city with high crime leads to higher costs.
If you are paying for insurance on more than one car, be sure to insure them through the same company, as most will offer large discounts for those who do. You can save hundreds of dollars per year by simply doing this.