Are you paying too much for your auto insurance? We have put together the top ten ways you can reduce your premium without reducing the level of cover:
1. Buy Online
When it comes to finding affordable car insurance there is no better way to go than by looking and shopping online for it, either by going to a specialist broker or doing the legwork yourself.
Online insurers can pass the biggest savings on to you simply because they have lower overheads; the insurance is the same as you would pay for elsewhere. Online quotation can usually offer car insurance at up to 60% cheaper than other companies.
2. Ask About Discounts
Most insurance companies offer discounts. While the availability of discounts will vary depending on your insurer, where you live and whether you meet eligibility, make sure to ask if there are any discounts you can take advantage of. The following is a list of common discounts (if available in your state, each insurer will have different eligibility requirements):
* Multi-vehicle discount – available if you insure multiple vehicles with the same insurer
* Multi-line discount – available if you insure your home and auto with the same insurer
* Good driver discount – if you have not had an accident or ticket in a long time
* Good student discount – if you’re a student with good grades, usually about a B average
* Safe driver discount – if you’ve taken and passed an accredited driver safety course * Anti-theft discount – if your vehicle has certain anti-theft devices installed
* Safe vehicle discount – if your vehicle has certain extra safety features
* Retiree discount – if you’ve reached a certain age, usually 50 or 55
* Low mileage discount – if your vehicle is not driven often
* Occupational discount – if you work in a certain field or hold a certain degree
* Auto club discount – if you are a member of an auto club, like AAA
* Association discount – if you belong to certain associations, like your alma mater * Away-at-school discount – if your child is attending school out of town
3. Increase Credit Score
Your credit score can be a large determination of your premium. If you have low credit score it is to your advantage to try to wash it up as almost as much as possible prior to trying to use. Most companies make use of an insurance risk score to gauge your reputation. A low credit score score is certainly going to mean higher premiums.
4. Remove or reduce coverage on older vehicles
If your car is getting up there in age, you may want to think about dropping the collision or comprehensive coverage (or both) on your policy. You need to think about this one though – it’s not always a clear-cut decision. You need to weigh the cost of the two coverage with the value of your car and your chosen deductibles. For example, if you had a 10-year-old car that’s worth about $1000, and your deductible was $1000, the coverage is not actually going to help you.
5. Multiple Policies with the Same Company
By having one company to take care of your insurance needs, costs may be cut. If you have multiple car in the home the need to be insured, putting all of them on the same policy provides you with a rebate for the second car. Also, getting the car and house with the same company could make payments less, instead of getting the house and cars insured by two separate companies.
6. Increase your Car Security
More security means lower risk for your insurance company and you can benefit from cheaper rates by locking your car in a garage a night, or installing an insurance company approved immobilizer or tracker.
7. Increase your Voluntary Excess
By deciding to pay a higher excess it also means you’re less likely to make a small claim on your insurance and are therefore considered a lower risk.
8. Search Online
So if you’re seeking to get or change your insurance, search online first. Online insurance is the wave of the future. All the top companies are switching to online for most reasons. They don’t ought to mail you anything, and so the expense is lowered on their behalf simply because they don’t need to print anything in some recoverable format.
9. Obey Traffic Rules
Next, it’s true that good drivers will forever pay lower premiums, so ensure that you avoid getting into accidents and prevent tickets. Over time, your risk to insurance providers will decline so will your premiums. You might also take advantage of low mileage discounts, as many insurance providers sets lower rates the scholars living nearer to campus. If you live even further, you could possibly reduce your premium by car-pooling.
10. Reduce the number of people under your policy
The more people on your insurance the more you’ll have to pay. So, if possible try to have as few drivers on your policy as feasible.
You can definitely save money on your car insurance, all it needs is for you to take time and look around. However make sure that when you compare policies that the policies are alike, it is not good taking the cheapest deal only to find that you have to add on extras for the cover you need later on.