Car insurance is something that you wish you will never have to use because car accidents can be extremely traumatic and potentially expensive. This makes it important for you to choose an insurance cover carefully not only to ensure you spend the minimum but also to have adequate protection. Some useful tips to cut down on your car insurance costs without compromising your safety:
Check Around for Rates before Renewing
If you have been renewing your policy with the same insurer for many years, it is quite likely that you will be getting very competitive rates. A study by the Consumer Reports National Research Center revealed that only 10% of the respondents found that they could save money with an alternative insurer. You can shop around using online comparative websites that can give you quotes from multiple insurance companies or by asking your agent to investigate the prevailing rates.
Choose Reputable Insurance Companies
Selecting the insurance company based on the lowest premium is not necessarily the smartest thing you could do. Even if they offer low premiums, these companies can create problems by lowering loss estimates, refusing to entertain claims, forcing you to buy only expensive OEM parts, or even raising your premiums disproportionately after a claim. It is better instead to choose a top-rated insurance company to be assured of good overall satisfaction.
Select an Optimum Deductible
You can save 15-30% by enhancing your deductible to $500 from $200 while taking it up to $1,000 can save you 40%. Consider your driving and claim history before opting for a very high deductible. This writer interviewed 5 auto insurance experts, all of whom advised choosing a deductible that gives you the best saving in the premium while not plunging you into a crisis in case you have to fork out the amount.
Get Only the Coverage You Need
The state specifies the minimum insurance coverage you should have. However, by sticking to the minimum required, a costly claim can wipe out your savings. It is better to buy a larger cover but you can lower your premium by removing what you do not require such as rental-reimbursement coverage if you have a second car at home or roadside assistance if you don’t drive much or if the manufacturer provides it as a part of the warranty.
Avail of All the Discounts You Are Eligible To
Find out the various discounts you could qualify for such as the installation of anti-theft devices, low mileage, taking defensive-driving or other driving courses, membership of affinity groups, good credit rating, and even making the payment electronically, among others. According to https://edition.cnn.com, a defensive driving course can get you a discount of up to 15% in some states.
Conclusion
The single biggest factor in determining the insurance premium amount is the kind of car you drive and its value. Even if driving a fancy sports car or SUV is good for your image, since these vehicles are expensive to own, repair, or replace, the premium is also commensurately high. To keep your cost down, opt for a modest family sedan that is easy to maintain, safe to drive, and a less attractive target for thieves.
