Auto insurance is definitely a necessary expense for most of us. Though premiums continue to increase year-after-year, very few of us stop and see if there are some ways to lower our auto insurance premium. We are listing few tips that can definitely help you save more on your auto insurance.
Avoid Expensive Sports cars
All those who have plans to buy a new car should keep in mind that type of car you have can have a big impact on the amount you will pay as premium for your auto insurance. While owning a sports car is a fun, it also means higher premiums. Even those who have stellar driving experience should avoid such cars and instead opt for safer, small cars, or vans as they have lower premium.
Aside from accidents, speeding tickets can also increase your auto insurance premiums. By obeying traffic laws and slowing down while driving, you can become eligible for reduced rates. If you’ve been violation free for free years, get in touch with your insurance company to discuss the price reductions you may qualify for.
Compare Insurance When Purchasing A New Car
Before purchasing a new car, compare insurance costs. Insurance premiums are based on car’s sticker price, likelihood of theft, cost of its repairs and it’s overall safety record. Some companies offer discounts if you install gadgets that reduce risk of theft or injuries. Opt for cars with safety features such as anti-theft devices and daytime running lights.
Don’t pay the price that your insurance carrier wants to charge you. These prices vary from company to company, so it’s best to shop around. Try to get at lest 3-4 quotes. You can either do that online or by individually calling few companies.
Get A Higher Deductible
The deductible is the amount you pay from your own pocket before your auto insurance policy kicks in. For example, if your deductible is $100, then you must pay this amount first before the insurance company makes a disbursement. With this in mind a savvy buyer can find affordable auto insurance that really fits within their budget. This is because, with a higher deductible, you can easily lower your auto insurance premiums substantially. For instance, by increasing your deductible from $300 to $450 you could easily reduce your coverage cost by 12-25 percent. With a $1000 deductible, you could save up to 45 percent or more.
Buy Your Homeowners And Auto Insurance From The Same Company
Some companies can give you a break if you purchase two or more insurance policies from then or ensure more than one vehicle with them. Ask the company representative on what multi-vehicle or multi-policy discounts they offer.
Reduce Coverage On Older Cars
Most car owners overlook this tactic to lower auto insurance premium. As your vehicle ages, it becomes less costly to replace, so why pay more premium for a lower replacement value of your old car? As a general rule, your car should be worth more than 12 times the yearly premium you’re paying.
Maintain A Stellar Credit Record
More and more insurance carriers now use credit information to price their policies. So by paying your installments and bills on time, you can raise your credit score and lower your auto insurance premiums.
Many companies price policies depending on how far your drive for work, and how far you drive each year. By walking to your work or by car-poling with co-workers, you can easily know off some amount from your premium.
Eliminate The Coverage You Don’t Need
Many auto insurance companies include certain coverages in their policies that you might not actually need. So eliminating comprehensive and collision coverage is a good option if you’re driving a older car. If you own more than one car, you can consider removing coverage for rental cars.
Pay Your Insurance In Full.
Most insurance providers charge between 2%-6% in service fees to allow you to pay for your auto insurance premium in monthly installments. If you pay your premium in full once a year, you can save few hundred dollars and ensure peace of mind that you’ve paid your premium in full.