We are all aware of car insurance and purchase it at the time of buying the vehicle. Unfortunately, very few of us understand its intricacies. Despite spending a fortune on it, we do not realize its full potential and what it involves. What would further surprise you is that you can lower the car insurance rates and costs with ease by just following some guidelines. Curious! Read on:
It is crucial that you do not assume that any particular insurance company is cheapest and the best or buy the car insurance that is provided by your car dealer. Often commercials and advertisements convince you about a company. But you may be surprised by the variation in costs for the same coverage by different companies. Thus, it is critical that you shop around and consider even the local and regional insurers. They might offer you a killer deal.
Compare insurance costs
Before you purchase any car; it’s important to check into its insurance costs. The premium of your car insurance depends on several factors like the cost of the vehicle, the cost to repair the car; the likelihood of theft, new or old car; overall safety record and various other factors. You get lucrative discounts on insurance at the time of purchase of the car. There are various online sites which help you compare the quotes of various car insurance providers and nail the best deal. They should be exploited well.
Look for all applicable discounts
Numerous factors can reduce your insurance cost. For instance, if any of your children is a straight-A student; you might qualify for a good student discount. Likewise, if your car has a number of built-in or installed safety features like anti-theft deterrents, air-bags, anti-lock brakes, etc.; you are likely to attract a lower premium.
Raise your deductible
A deductible is an amount that you pay in scenarios of a claim. A higher deductible automatically lowers your premium amount. Depending upon your affordability, you can adjust your deductibles. It can appreciably lower your car insurance premiums.
Bundle your policies
Buying multiple policies from the same insurance provider also fetches you attractive discounts and lower premiums. Most common is the bundling of home insurance and auto insurance. Likewise, you can also ask for a higher discount if you are taking insurance for more than one car.
Maintain a healthy credit score
Your credit score is a key parameter considered by many insurance companies regarding your credibility. Thus, it’s important always to pay your bills on time. Just this small step can vastly improve your credit score and prove advantageous for you in numerous situations. In case you spot an error in your credit report, you must contest it immediately and get it rectified. A poor credit score can hike your insurance premium appreciably.
Do away with collision and comprehensive coverage for an older car
It is always recommended to skip on collision coverage and comprehensive coverage if you have an older or a relatively cheap car. In collision coverage, you get reimbursement for the damage to your vehicle after an accident with another car or object. The comprehensive coverage reimburses you for damage inflicted on your car due to weather, vandalism, floods, fire or even animal crashes. The limit of the payout in these cases is decided by the value of the car in scenarios of being stolen or totaled. For a low market value car, this deal is not profitable or worthwhile.
Exploit low-mileage discounts
In case your car does not log many miles and you are a cautious driver; you can ask for low-mileage discounts or even opt for usage-based insurance. Low miles logged means the car is less vulnerable to wear; tear and risks and thus you get a significant discount.
Be a better driver
Your driving record is also considered while deciding on the car insurance premiums. Those drivers who have a clean record with regards to accidents or even tickets manage to get a lower premium offered to them. You can also install gadgets like Blackbox in your car via which the insurance company can monitor your driving. Via this system, they monitor number of things like your speed, extent of cautious driving, aggression of acceleration and brake etc. A good record makes them cut the premium substantially.
There are a number of other factors which can help reduce your car insurance premium. However, the above guidelines are enough to trigger a substantial cut in your car insurance premium and put the saved money to better use.