Ways to decrease your auto insurance cost

Ways to decrease your Auto Insurance cost

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In recent years, car insurance premiums have increased. The number of claims has increased and the number of accidents has almost tripled. Insurance companies used the increase in fees to protect themselves from paying out.


Car insurance insures you financially while you are driving. Whether you only have comprehensive coverage or basic liability insurance, you need to make sure that you are getting the best possible deal for your policy.


So is it really possible to lower your car insurance premiums?


Yes, it is possible. Try the steps below to lower your rate


1) Take Advantage of Discounts for Multiple Cars 


At the end of the day, you may be paying more per vehicle to insure one vehicle instead of insuring multiple vehicles with the same company. Insurance firms usually offer bulk rates because they want you to patronize them.

Multiple drivers must live in the same household and be related by marriage or blood. Two unrelated people can also get a discount, but they must own the car together.


If one of your drivers is a teenager, you may have to pay more to insure them, but if they are in the top 20% of their class or if their score is a B average or better you can get a good student discount. These discounts will continue until your child turns 25. The range of the discount is from as little as 1% and up to 39%, so if your teen is a brilliant student be sure to show proof to your insurance agent.

Some insurance companies may offer auto insurance discounts if you also have other policies with them, such as homeowners insurance. When you bundle your auto insurance and homeowners together, they may offer discounts of up to 25%.

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2) Shop around.


You don’t have to get stuck with your car insurance policy. If you do not like the rate you are charged you can always opt for another insurance company.

Switching car insurance companies can help you save money. Your current company may be willing to give you a better offer for a good price to keep your patronage. They may offer you a loyalty discount to thank you for remaining a loyal customer.


Some individuals do not shop around for the right auto insurance because they lack the knowledge to do so. They are reluctant to spend too much time comparing quotes. For this reason, it is advisable to work with an independent insurance agent who will shop around you.


3) Use Mass Transit


When you sign up for car insurance, the company will generally have you fill out a questionnaire. One of the questions you are likely to be asked is the number of miles you drive your insured vehicle each year.


If you use your vehicle for a three-hour commute to work each day, you'll generally pay more than if you drive just one mile a day. For this reason, you need to consider using public transport system to lower the number of miles that you drive. However, you mileage will have to have to reduce significantly before getting a discount. Inquire from your insurance company about the company's mileage limits so that your efforts are not in vain.

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4) Purchase an insurance-friendly car.


Many people get so caught up in the euphoria of a new car that they forget how much insurance will cost. Do not make such a mistake. Since newer car models cost more to repair and replace, they will cause your insurance premiums to escalate.


So, instead of a new car model, consider buying a used vehicle that is about 4 to 10 years old. You can find lots of used cars that don't look terrible—so you can still look classy on the road while saving money.


If you buy a small vehicle, you save more on insurance because smaller cars are cheaper and easier to fix than big trucks. If your pickup truck or SUV is a fuel-consuming brand you just don't really need, trade it in for a smaller SUV. Small-sized SUVs such as Toyota RAV4 or Honda CR-V are some of the cheapest cars that can be insured. Many times they are even cheaper than small cars and sedans.


5) Request for higher deductibles


Deductibles are the fees you pay before the insurance policy begins. You can lower your costs significantly by seeking higher deductibles. For instance, a deductible of USD200 to USD500 can reduce your risk and coverage costs by 15 to 30 percent. A deductible of USD 1,000 will save you about 40 percent or more. Before you select a high deductible, make sure you have enough money set aside to cover it if you have a claim.



6) Be a good driver


As humans, we love to be in control and this is definitely something you can control. You will pay more for insurance if you drive carelessly. This is because you pose a high risk for yourself and other road users.

So, if you're wondering how to lower your car insurance, you can start by looking at yourself.


Adhere to the rules of driving and pay attention to what is happening around you. As you reduce the number of violations committed, you will reduce your car insurance costs as well. And if you're serious about keeping your costs down, you can go the extra mile by taking a course in defensive driving.And if you like to drive barefoot, it may not be legal but it's not always the safest option.


7) Install anti-theft devices


Installing anti-theft devices will help you lower your rates. If you have an anti-theft system in your car, some insurers will offer you 23% potential savings. The insurance firm will let you know what devices to install to lower your premiums. LoJacks and car alarms are two types of devices that you may want to ask about. Find out whether or not the cost of adding such devices will result in enough savings to be worth the money and trouble.


8) Maintain a good credit record

You can lower your insurance costs by having a good credit history. Most insurance companies use credit information to determine the price of auto insurance plans. Research has shown that people who manage their credit properly have fewer claims to make. To protect your creditworthiness, make your payments on time, keep your credit score as low as possible, and don't take out more credit than you need. Check your credit report regularly and correct any errors as soon as possible so your record will be correct.


9) Study your insurance policy.


You will be amazed at the number of people who overpay for insurance because their teen driver is still included in their insurance policy even though their teen is now an adult and has their own auto insurance policies. Or maybe you failed to renew your insurance after you sold a vehicle, got married, or moved to a new neighborhood.


Updating the information on your policy can lower your car insurance a great deal. Whenever you go through a major life change, check your coverage at least once a year to make sure your policy is up-to-date.



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