The best thing about insurance is that the more you have knowledge about the workings of insurance, the more premiums you will be able to save. Here are few simple steps that can turn the reader into an informed consumer and help in maximizing the savings.
Get a quote and apply online
The thing to note about auto insurance premiums is that premiums could vary widely, depending on the company providing the coverage and this could be to the tune of hundreds of dollars or more. Hence it is imperative to get a thorough comparison of different coverage provided by the various insurance companies.
Make sure all your cars are on the same policy
Check to find if “Multi-vehicle discount” is offered to customers who plan to insure more cars than a single one in the same policy. You get savings on both the cars.
Insure both your car and home with the same company
Many insurance companies offer insurance of both your home and car on the same policy and that could give you a discount called the “Multi-line discount”. The insurance provided is perfectly legal as you could get discount off your premiums.
Increase your deductibles
In short, the insurance premium is lower with higher deductibles. Hence if you could pay $1,000 for repair job, then you could increase by $1,000 your deductibles and you will be able to pay less for your insurance.
Older car owners should consider dropping your collision coverage
If your car is getting older, you may have to drop the collision coverage on your car policy. However, you need to weigh the collision coverage cost with the car value and deductibles.
One of the most influential factors when calculating insurance rate is your driving records. Your insurance rates are affected by your tickets for up to three years while with accidents, it is a minimum of six years. You could be paying extra premiums over the years with a bad driving record.
Drive a “low-risk” car
The insurance are calculated based on the claims history for that car. With a greater likelihood of the car being stolen or meeting an accident, the greater is the amount to be paid for insurance. If you plan to purchase a new car, compare quotes to know the different rates charged.
Don’t drive to work
Insurance rates go higher if the car is used for commuting to work on a regular basis. So sharing a ride or taking the bus will help in lowering your insurance premiums ultimately.
Take a driver’s training course
Licensed drivers with an approved drivers training course to their credit within the last three years have to pay a lower premiums. It makes sense to drive safely and pay lower insurance rates.
Install an anti-theft device in your car
Many car insurance companies take into account the presence of anti-theft device installed in the car while determining rate. Hence it would do well to check with the company if they offer “Alarm or anti-theft discount”.