Ideas for Cutting Car Insurance Costs: The rising cost of vehicles and car insurance rates can be a big part of your driving budget. There are ways which can help you save some cost and decrease your financial burden.
- 1 Tips and Ideas To Cut Car Insurance Costs:
- 1.1 1. Safe Driving Cuts Costs:
- 1.2 2. Go For a Defensive Driving Course:
- 1.3 3. Multiple Drivers Can Help You Save Some Cost:
- 1.4 4. Big Cars Mean Big Costs:
- 1.5 5. Use Public Transport:
- 1.6 6. Look For Better Premiums:
- 1.7 7. Location Could Affect Costs:
- 1.8 8. Increase Your Deductibles:
- 1.9 9. Your Credit Rating Should be Improved:
- 1.10 10. Install an Anti-theft Device:
- 1.11 11. Usage-based Insurance:
- 1.12 12. Talk To Your Agent:
- 1.13 13. Review Comprehensive Coverage:
- 1.14 14. Understand Additional Discounts:
- 1.15 15. Eliminate What You Don’t Need:
Tips and Ideas To Cut Car Insurance Costs:
1. Safe Driving Cuts Costs:
Safe driving is the first instruction and warning that comes with automobiles. When you are mindful about your driving, avoiding accidents and violations, you will be not just safeguarding yourself but also your insurance rates.
Companies generally allocate points to drivers for violations. More points could mean higher insurance premiums.
2. Go For a Defensive Driving Course:
In some cases, car insurers offer a discount to those who successfully finish an approved defensive driving course. Car drivers might also manage to reduce the number of points they have on their license by undergoing a defensive driving, accident prevention, violation prevention, or other similar courses.
If you are taking a defensive driving course only from the perspective of getting some help on the insurance costs, ensure that your directly ask your insurance company or agent about this discount. It is essential that the effort you put into this course not only helps your driving but also leads to making insurance cost savings. You should always sign up for an accredited course.
Also Check: Cheapest Way To Rent A Car
3. Multiple Drivers Can Help You Save Some Cost:
While inquiring for a quote from an auto insurance company for just a single vehicle, you might get a higher quote per vehicle versus if the inquiry is made for insuring multiple drivers or vehicles with that particular company. Many insurance companies tend to offer a bulk rate or a deal if you are getting more vehicles or drivers insured. As this increases business for them, they might lower their regular rates and offer a rate for the group.
You can ask about your eligibility from your insurance agent. In a general case, multiple drivers must be related by blood or by marriage or live at the same residence. If two non-related people get a car in a joint association, they might also be able to get a discounted rate.
You might have to pay extra if one of the multiple drivers is a teenager. You might even get a discount on your teenager’s coverage if their grades are B average or above. The discounts could have a range between 6% and 20%, hence do carry proof when applying for their insurance.
These are some companies which might offer auto insurance at discounted rates if you hold other policies with them like homeowner’s insurance. Your agent will be able to tell you the best of such deals, if available and applicable.
4. Big Cars Mean Big Costs:
The idea of getting a huge SUV is interesting to many but insuring your huge, top-of-the-line car could turn out to be costlier than insuring a small and lower-cost car. There are some car insurers in the market who offer a discount on insurance when you buy an alternative fuel vehicle or a hybrid car.
If you are considering your options in cars and buying an SUV is not the first choice then you should definitely consider buying a smaller car. It will help protect the environment plus save you some money with car insurance as well. Before purchasing the car of your choice, you should check the exact rates for your car and the other options which you have.
5. Use Public Transport:
Generally, when you are filling the insurance form, the company will ask you certain questions. In the questionnaire, they might want to know the number of approximate miles you drive with your vehicle per year.
If you are using your car for long commutes every day, approximately three hours, you will end up paying more premium than a person who drives only one mile per day. You can try using public transport so that you do not have to drive for longer miles every day. Decreasing your mileage will help you get a discount from car insurers. You can directly ask the best car insurance companies their mileage brackets to understand the difference in costs.
6. Look For Better Premiums:
If you already have a policy and it is about to be renewed then you should get quotes for your Car Insurance Costs from more than just one insurer. Even if you don’t take them, it is better to understand the market scenario. Checking the quotes from different companies in a year or two will help you know if there are cheaper or better rates based on your requirements.
While it is important to look for cheaper quotes, it is to be understood that cheap quotes might not always be the best quotes. Hence, it is important to take a wise decision while choosing the best suitable option for your insurance. You also have to check the insurer’s creditworthiness as they should have to wherewithal to pay an insurance claim.
Your decision should be based on what your contract covers and the financial strength of the insurance provider.
7. Location Could Affect Costs:
Insurance costs depend on locations. If you are planning to relocate and have space to factor in your car insurance rate then you should consider the potential financial change your car insurance can make.
8. Increase Your Deductibles:
When you select your Car Insurance Costs, you generally choose an amount of money or deductible that you would have to pay before your insurance company settles in case of any theft or accident or any other kind of damage to the vehicle. Deductibles generally are in range between $250 and $1,000. Typically, lower deductibles mean higher annual premium.
If you want to lower the value of your premium, you should increase your deductibles. You can ask you agent if you are to increase your deductibles then how will it impact your premium. It could lower your annual premium by a great value or could have a very low impact on the savings.
9. Your Credit Rating Should be Improved:
Your driving record could be an important factor in your auto insurance costs. It can help the insurers understand your behaviour. Similarly, many car insurance companies might also consider your credit ratings to determine insurance premiums.
Insurers tend to look at your credit ratings as their studies show that the chances of you filing claims is really low if you show a responsible behaviour in your personal life.
You can ask your agent how your credit rating affects your insurance premiums. You should try your best to keep it high always.
10. Install an Anti-theft Device:
If you install anti-theft devices in your car, you stand a chance to lower your annual premium by many percentage points. Your Car Insurance Costs company can tell you which devices, in particular, can lower your premiums. You can inquire about two types of devices, Car alarms and LoJacks.
If your intention to install an anti-theft device is to decrease the value of your insurance premium then you should calculate how the cost of getting and installing the device could help in saving significant amount versus the effort put in to do the same.
11. Usage-based Insurance:
If you do not drive much, then you might want to look at a usage-based insurance program like Allstate’s Drivewise, Progressive’s Snapshot, or State Farm’s Drive Safe & Save. When you sign up for these programs, your insurer gets the permission to track you driving. In return for understanding how well you drive, how much distance you cover and when you drive, the insurer can offer you discounts. If you drive less than 10,000 miles per year, you could save some money on insurance with the help of this option.
12. Talk To Your Agent:
There are many ways to find discounts on car insurance premiums. You should always discuss your case with your car agent and ask if the company has any offers that could benefit you. Even if you are planning to adopt to a certain method to reduce costs on the premium, you should always ask your agent how much will it impact the premium
13. Review Comprehensive Coverage:
If you are driving a very old automobile, you can let go off the collision or comprehensive coverage. The reason being, if your car is involved in an accident, your car might be totalled by the insurer. Suppose the value of the car is just $1,000 and the cost of collision coverage is $500 per year, then getting coverage might not be a wise decision.
14. Understand Additional Discounts:
Many auto insurance providers offer different kinds of discounts like:
- Memberships in specific groups or organizations that give discounts
- Offer to allow you to pay the full six-month or annual premium at once
- Agreements to get e-bills and documentation
- Insurance bundles with other kind of insurance like homeowners insurance
The list of these possible discounts could be long. You should compare the discounted and original price from many insurers to understand what’s best for you.
15. Eliminate What You Don’t Need:
When you are getting an insurance, check what all coverage is involved in it and ask how you can remove the coverage you do not require. You might not need all options in the policy like roadside assistance or Cheapest Way To Rent A Car coverage. These factors can reduce the costs if removed from the policy.
These are few ideas which can help you understand your Car Insurance Costs from a financial point-of-view plus make you some savings. Depending on how and which you can implement, you should give them a try to reduce your premium costs.