It always makes sense to use every possible opportunity to save money. We all have necessary expenses in our lives. Car insurance is one such expense.
There are many factors regarding your car insurance over which you have little to no control. Fortunately, there are factors that you can control.
Many people, the world over, are missing out on opportunities to save money on their car insurance. While it is not easy to save money on health insurance or home insurance, with better information, you can, effectively, reduce your car insurance premium.
The following are common sense and proven tips on how to reduce your car insurance premium:
Drive carefully, always
The benefits of driving carefully may seem obvious but reckless driving is a major cause of car accidents and high premiums. Your driving record is one of the main factors that insurance companies look at to help them calculate your premium amount. So always drive carefully. Ensure that you are not involved in any accident or traffic violation. This will help you save money. Insurance companies usually check the records of past three to five years.
Buy a low-profile car
Besides their power and prestige, the luxury and comfort of high-profile cars is undeniably enjoyable. However if you intend to save money, be aware that premium charges are more for high-profile cars like Ferraris because repair costs are high for these models. These cars are also more likely to be stolen. Before buying any model, it is a good idea to research the cost of insuring the car.
Consider driving less
This is the best way to reduce your car insurance premium. If you drive less, you pay less; it is as simple as that. Choosing to car pool for daily commute to work will not only save you gas and mileage. You will also qualify for huge discounts on your premium. Some car insurance companies offer up to fifty percent discount to owners who drive fewer miles. Be aware that they will insist on installing a mileage-tracking device in your vehicle. Their logic is simple; the less you drive, the less likely you are to be involved in an accident.
Ensure that there is no duplication in coverage
Many people lose money as a result of duplication in coverage. This can happen unknowingly or by mistake when additional coverage or another policy is bought for items already covered in one policy. Usually auto insurance covers charges for personal injury during the accident. Some car insurance policies also help you pay your bills while you are in the hospital due to car accident. You need not get another policy to cover for medical expenses in the event of an accident. You may risk engaging in insurance fraud if you try to collect from another insurer for loss on the same vehicle. So understand the scope of coverage before signing on the dotted line.
Consider increasing the deductible
This is one proven way of reducing your car insurance premium. The deductible is the amount you pay before your actual insurance kicks in. Increasing the deductible results in reduction of the premium amount since you will be assuming a larger share of the financial responsibility. However if you are prone to accidents, it is not a good idea to increase your deductible.
Consider combining policies
You may save substantially by combining your home insurance with car your insurance. Many insurance companies give you attractive discounts on your entire policy. The discount is usually around 10 percent. If you have all your insurance policies with one company, you may enjoy a discount of around 20 percent. Try to stick to one insurance company. Loyalty is always rewarded.
Get premium discount for safety features
Standard safety features for which insurance companies offer built-in premium discount include:
- Anti-lock brakes
- automatic seat belts
You may potentially earn additional discounts by installing anti-theft devices such as:
- Car alarms
- Remote security keys
- power locks
- steering wheel clubs
- GPS tracking system
Discounts will vary by different companies and location.
Work on improving your credit score
It is always a good idea to maintain a healthy credit score. It can be achieved if you do the basics right. One proven way of keeping good credit score is to pay your bills on time. Credit history is a highly valued variable when it comes to calculating car insurance premium. Good credit history has many benefits.
Auto insurance is quite complicated with many variables to be considered.. For this reason, it is very important to shop around and to ask questions. By implementing the above-mentioned tips, you can save substantial amounts on your car insurance.