Most of us want to save costs when it comes to car insurance. While saving money is the ultimate goal, you need to ensure you receive the right coverage every year. You wouldn't want to encounter several challenges such as slow response and insurance that will only cover a small percentage of damages incurred in an accident. Here are tips to help you cut down on auto insurance costs.
1. Compare Different Insurance Quotes
Begin this process by getting as many insurance quotes as you can. Many options will help you settle on a cheaper one. While most of the policies offer similar coverage, you may find major differences in each insurance. Getting at least four quotes from different companies could be a good start to saving some money.
2. Bargain for a Higher Deductible
Raising your deductible is one of the best ways to get affordable auto insurance. Involvement in an accident means you, as the car owner, paying the deductible first before your insurer pays the damages. The higher this amount, the lower the amount you'll pay, which saves on your premium. You could even save up to 40% in some cases. However, you need to save up enough for unforeseen repairs for this tip.
3. Consider Additional Insurance Discounts
Asking for discounts is also another brilliant way to save on insurance. Multiple discounts, which vary from one insurance provider to another, can drastically save you money when it comes to vehicle insurance. Common discounts offered include;
- Full upfront payment of premiums
- Student discount
- Defensive-driving courses
- Long-time customers
- Anti-theft devices
- No accidents in a certain number of months/years
Do proper research on whether these discounts are available in your state.
4. Work on Your Credit Score
A healthy credit score can play a significant role in helping you save money on insurance premiums. If you manage your credit well, you're likely to have very few claims in a short period, and most insurance providers wouldn't mind covering your car at a lower premium. Improve your credit score by paying bills on time, regularly checking the score to correct errors, and maintaining a low credit card balance.
5. Think About Usage-based Insurance
If you drive only for a few miles every day, usage-based auto insurance could be your best bet to save on costs. If your log fewer miles than the car limit, you can ask for a deduction from the insurance rates offered. You can sign up on programs such as State Farm's Drive Safe and Save and Allstate's Drivewise, which enable insurers to track your drives to qualify you for discounts. These discounts are particularly beneficial for individuals working from home or those who don't drive more often.
Conclusion
Auto insurance premiums are made on the basis that a driver may be involved in an accident that could leave the car damaged. Rates will often vary depending on your car model, driving record, credit score, age, and sex, among others. The above tips should help you significantly reduce these costs.
