Car insurance is one thing no driver can afford to avoid. The consequences of driving without insurance in any state in America can be costly. In addition to having your driving license suspended, you could even face a jail term. Thankfully, there are ways to lower your car insurance premium as long as you learn to shop smartly.
1. Opt for higher deductibles
You can save a considerable amount on car insurance if you increase your deductible. However, you need to make sure you can come up with the amount up front in case you make a claim. Don’t compromise on coverage either. That can be dangerous if you are involved in an accident and someone sues you for more than your liability coverage.
2. Combine policies
Some insurance companies provide an umbrella policy to cover your home as well as your car. An umbrella policy can help you save a significant amount which you will find out if you calculate each policy individually.
Many drivers aren’t aware that their credit scores can affect the cost of car insurance. A good credit score can fetch you lower rates from your insurance company. Errors can hurt your score get them fixed immediately before you end up with a bigger car insurance bill.
4. Combine Policies
It pays to combine policies and purchase them from the same provider. If your spouse or teen has a car insurance policy, combine them into one premium and you will be able to cut down on insurance costs.
5. Learn to shop smartly
Some drivers are of the opinion that insurance companies have a fixed rate. This is far from the truth, since each provider has a different way of determining premiums. Make use of comparison websites to obtain multiple quotes and you will find a difference in rates.
6. Maintain a good driving record
A driving history without any tickets is the best way to keep your car insurance premiums to the minimum. You will be considered a low risk driver by the insurance company who will in turn offer you lower rates.
7. Drop collision coverage
Vehicles depreciate fast so if you are driving an older vehicle then it may be prudent to drop collision coverage since the insurance provider will only give you what the car is worth. This can amount to a significant sum. Remove any optional coverage you don’t need.
8. Consider your mileage
Insurance companies offer better rates to drivers who don’t exceed a specific amount of miles every month. Consider your options of car pooling and clock lesser miles if you want to avail of such discounts.
9. Limit your claims
Don’t end up making claims for small bills you can easily handle on your own. This will only hurt your chances of a no claims bonus in the following year.
10. Ask for discounts
Don’t feel shy to ask for discounts for good drivers, multi-car discounts, and for adding anti-theft and other car safety devices. These can knock off a tidy sum from your insurance bill every month.
