How to Save on Car Insurance and Stay Protected
You must have auto insurance for you to register and drive a car. It protects you from unforeseen medical and auto repair expenses in the event of an accident. But have you scrutinized your auto insurance bill lately? You most likely hate how much that coverage costs. And wonder where you can find the cheapest car insurance quote.
Several reasons could explain why you’re paying a lot for your auto insurance. Things like your age, gender, credit history, and driving record affect your premiums. Of course, you can’t do anything about your age or gender, but you can control several other things to get the cheapest car insurance rates.
Read on to find out how you can save on auto insurance.
Take Advantage of Discounts
Insurance rates aren’t cast in a stone. Insurers offer several discounts that you could be eligible for. It doesn’t hurt to ask for a better rate.
You can get discounts for:
- Working certain jobs, like being a nurse, teacher, or part of the police force.
- Military service.
- Membership of groups like university alumni societies or AAA.
- Excellent student grades.
- Being a senior citizen.
- Parking your car at home and not out on the street.
- Safety features installed in your car.
- Loyalty discount for hanging around with your insurance provider for a while.
Pay Your Insurance Differently
When you make the job of insurance providers a little bit easier, they will repay the favor with lower premiums and discounts. To achieve this, adjust how and when you pay your premiums. For instance, you may make:
- Lump-sum payments: Consider paying six months or a year in advance rather than waiting to pay your car premiums at the end of each month. This is cheaper as your insurer won’t have to spend money to process your monthly payments.
- Automatic payments: Insurance providers may offer your discounts for choosing to go paperless. Also, you will not miss payment obligations, and you’ll have no reminder emails to read. It’s a win-win.
- Advance payments: You can get discounts from your auto insurance provider if you can pay your premiums a month or two in advance. After all, you will steer clear of all those nasty late fees.
- Pay per mile: If you cover less mileage, it should translate to lower car premiums. What if you drive a lot? You can try to reduce how often you drive (and your premiums) by moving closer to work, using the public transport system, or carpooling with workmates.
Shop Around for Better Rates
Most drivers don’t actively shop for car insurance policies once they have one. It’s as if they are married to their current providers. You can’t see what others are charging out there if you think you are getting the best rates.
Some people don’t shop around for better auto insurance because they do not know where to start. Another reason is they think it is time-consuming and stressful to compare different insurance quotes.
If that’s the case, consider seeking help from an independent insurance agent. They will do the legwork on your behalf. It doesn’t get better than this.
Switching auto insurance companies can save you money. Remember, insurers calculate your potential risk differently. Some may look at your credit history, while others may not. Also, others may consider your gender, and others may not. So you can be sure of finding differently priced car premiums out there.
Bundle up Your Policies
Let’s say you own several whips in your parking lot, and you also own a house and a boat. You can insure all these assets with one insurer to get lower premiums.
Bundling your home and car insurance policy will save you money on your monthly premiums. What’s more, it reduces the number of documents you have to grapple with and insurers you have to deal with. Who wouldn’t want that?
Raise Your Deductible
A deductible is an amount you pay from your pocket to cover an insured expense. So, let’s assume you are involved in a collision, and the repair bill amounts to $ 3,000. If you have a $1,000 deductible, you will pay $1,000 out of your pocket to cover the expenses. Then your insurer will pay the rest, which is $ 2,000.
The majority of drivers opt for a low deductible as they envisage huge repair bills following an accident. What they don’t take into consideration is the monthly insurance premiums.
When you opt for a low deductible, your monthly premiums will rise to cater to the possibility of paying more for your car repairs. Increasing your deductible saves you a lot on your monthly rates.
There are several ways in which you can lower your auto insurance rates. However, it may be challenging to decide which ones will make you considerable cost savings. That’s why you need to work with a reputable independent insurance agent to do the leg work for you.