AUTOMOTIVE

5 Ways To Lower Your Car Insurance Costs

Car insurance is crucial for car owners to protect them against financial losses. But the problem is that purchasing it can be expensive, especially if you are getting full auto coverage. Therefore, it is essential to look around for the best deals possible. If you’re looking for ways to lower car insurance costs, you have come to the right place. Here are five ways you can save when purchasing car insurance.

  1. Shop Around

Don’t be quick to buy the first car insurance policy you come across. Remember that policy prices vary in different companies, so it helps to compare deals. So, get three or more price quotes if you are buying car insurance online or via phone.

Also, bear in mind that some companies use their own agents to sell their insurance. These agents usually have the same name as the companies that hired them. Other companies may employ independent agents that sell policies from different companies, while others sell insurance directly to customers online or through the phone. So make sure you know how the company operates to access their quotes.

  1. Ask about Multi-Car Discounts

Insuring a single vehicle is more expensive than insuring several cars. Most providers offer discounts to bulk rate purchasing since they want you to shop from them. Request quotes for multiple vehicles instead of a single car when asking for quotes. If the company offers such deals, ask whether you qualify.

However, remember that most insurers offer coverage for multiple vehicles if the drivers live in the same residence and are married or related by blood. But, even unrelated individuals can obtain a discount, only that they must own the car jointly.

You will pay more if one of your drivers is a team. But you can get a discount if your child performs well in school on the coverage.

  1. Review Your Deductibles

Deductibles are the amount you pay before you claim comprehensive or collision coverage. You usually choose this amount before purchasing the policy, and you can change it later.

You may find a higher deductible cost-effective as it lowers your premium. That is because you’ll pay more of the costs when you file a claim, and you probably won’t file for minor claims since the repair cost will not be more than your deductible amount in most cases.

For instance, if you raise your deductible from $100-$400, you can reduce your coverage by 15-30%, and raising it higher could give you more savings. But it’s worth noting that if you increase your deductible, ensure that you have enough money aside if you file a claim later on. For instance, if your deductible is $2000 and the damages cost $6000, the insurance will pay $5000, meaning you should pay the remaining amount out of pocket to cover for repair.

  1. Drive Safely

Sometimes all you need to reduce your auto insurance cost is to drive carefully. Most companies check your driving record before selling insurance to you. Drivers with a bad record are often given higher premiums as the provider considers them risky.

On the other hand, if your record is flawless, you will be rewarded with better deals. So, ensure that you drive cautiously and slowly and check before leaving a red light or stop sight. Being reckless with your driving can cause an avoidable accident and increase your insurance costs.

  1. Purchase an Insurance-Friendly Car

Believe it or not, the car you drive can bump up or lower your insurance premiums. If you already have a car, there’s nothing much you can do. However, if you are shopping for a new car, there are many things you can do.

Please avoid buying sporty or expensive cars. Remember that the collision coverage cost depends on the value of the car. So it means that insuring certain vehicles is more expensive.

Additionally, choose vehicles with plenty of safety features. Such features can reduce your insurance premiums. Ask your provider for a list of safety equipment that will lead to a low car insurance premium. Once you have this list, try to find a car with as many features as possible, like passenger and rear seat airbags, a security system, etc.

Final Thoughts

Although car insurance is costly, there are many ways to lower it. These five tips can push you in the right direction. But make sure you are buying your insurance from the right insurance company.

 

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