Whether you drive with basic liability insurance or full coverage, it’s essential that you are protected. That said, good car insurance needn’t cost the earth. So, how can you make sure that you are not overspending on your car insurance? Today we are going to discuss some tips and ideas for cutting car insurance costs. Car insurance companies are able to look at a lot of things other industries can’t check to lower your prices, including if you are a good driver.
Here are five tips and ideas for cutting your car insurance rates.
1. Drive Safely
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It should go without saying that it’s important to practice safe driving and pay attention when you are on the road, but it goes beyond safety. With more in-car distractions than ever before, it requires even more diligence to stay safe on the roads but pays in more ways than one.
The safer you are as a driver, the less likely you are to be involved in any kind of accident, and the lower the risk of you receiving any moving violations. When you are involved in accidents or receive multiple moving violations, it can negatively affect your insurance premiums, so drive safely.
2. Shop Around
This can take a little time and patience, but shopping around for the best deal can save a surprising amount of money. Particularly if your policy is about to renew and/or your premiums have gone up, it often pays to compare the market. At IASTL, we are Independent Insurance Agents and we shop several companies for you to find the best policy for you.
Certainly cheap doesn’t always mean good, so be sure to compare the features of the coverage, and consider checking out a company’s reviews if you haven’t heard of them before.
When comparing, remember that many insurance agents will have some room for negotiation in order to win your business. So, if you get a better price elsewhere, don’t be afraid to return to your original provider to see what they’re willing to do.
One other alternative worth mentioning is checking to see whether you are eligible for any coverage or discounts through your employer. If your company does offer you company car insurance, however, be sure to understand fully who is liable if an accident occurs.
3. Review Your Coverage
It’s not uncommon to find that we’ve over-insured ourselves once money is tight and we take the time to review our coverage. It’s important to carefully consider any additional coverage before dropping them, but if you are comfortable and confident in going ahead with shaving off some optional extras, it can save you money on your premiums.
It’s also handy to consider what level of coverage you need in terms of the way you use your car. These days, many insurers will take the time to consider more vehicle user information to arrive at a fair and reasonable premium. For example, if you work from home, some insurers will offer you lower premiums based on lower mileage. That’s right the number of miles you drive can affect the savings on car insurance. People often overlook mileage discounts and waste money on car insurance premiums that they don’t have to.
It is also possible to get short-term car insurance, so if you are only planning on driving for a short period of time, don’t presume that you have to take out an annual policy.
4. Access Multi-Car Discounts
It is common for insurers to offer discounts to anyone insuring multiple cars. Typically, to qualify for these discounts, multiple drivers must be related either by marriage or blood and must reside at the same address. Occasionally, two unrelated people can access a discount, but they must jointly own the vehicles to be insured.
It is also possible to access discounts on car insurance when you already hold other types of insurance with the same company. For example, Allstate offers a 10% discount on car insurance and a 25% discount on homeowners insurance when you take both out and bundle them together. So, when shopping around, check in with your current insurance providers across the board.
5. Downsizing Your Ride
You may not want to hear this. But it can’t be ignored that insuring a top-of-the-range, luxury vehicle or a high-performance car is a lot more expensive than insuring a small, safe run-around or family car.
While taking the drastic action of swapping your vehicle completely may be overdoing it for some, for others it may be a necessity, at least in the short term. Particularly if you are being penalized by an accident or multiple traffic violations, it may be worth the savings to downsize your ride until the penalties expire and you can regain some discounts and safe driving points.
You can always run some hypotheticals with your insurer before deciding on a new vehicle. On the bright side, depending on your current vehicle, you might be doing your bit for the planet and potentially increasing your own safety, too.
Depending upon your circumstances, there is a range of options available when it comes to accessing some car insurance discounts and/or otherwise cutting the costs. In addition to the above, some insurers offer discounts for the completion of defensive driving courses, as well as finding a way to increase the security of your car overnight. Your credit score can also affect your insurance premiums, so try to keep that in check, too. All of these things can help reduce car insurance costs including adding a higher deductible.