Insuring your car is a significant investment, and yet it’s one you really need to safeguard your finances. There are various options on the market, ranging from basic plans to comprehensive coverage.
How much you fork out for your car insurance depends on many factors. Still, nothing hurts your finances more than paying more than you should on coverage.
You can have the most suitable vehicle plan without costing you a fortune. You will have to ensure that by finding ways to cut costs. Here are some ideas to consider for cutting car insurance costs:
1. Compare Costs
If there is a sure way of getting the most affordable policy for your car is to compare costs across multiple providers.
Insurance companies don’t charge the same amount for the same policy. That’s because the marketplace is like any other. The competition is stiff, which influences the cost.
When you go grocery shopping, you will buy from a vendor offering quality at a lower price. The same applies to insurance, as no two providers will have matching quotes on the same policy. Compare quotes from multiple companies and go with the most affordable one.
2. Reconsider Your Ride
The vehicle you buy certainly affects how much you pay to cover it. High-end rides will cost more because they will cost your insurer more in compensation.
While it’s unlikely that you will compromise your taste just to cut down on the insurance premiums, for some, it’s a necessary financial decision.
A good strategy would be to shop around for a good deal on the car of your choice and, if possible, go for cheaper alternatives.
3. Ask for More in Deductibles
It’s essential to really consider your car insurance deductibles when buying the policy. In the event of damages, you will be expected to pay a certain amount before your insurer takes over.
However much you decide to pay in deductibles, remember that if you choose a lower deductible, you will pay more in premiums.
It would make more sense to pay a higher deductible and reduce your premiums. Ask your insurance agent about deductibles and what you can do to cut costs.
4. Pay Your Premiums Annually
Insurance providers love your premiums and will be willing to deduct them from your rates if they receive a yearly lump sum. While the monthly or quarterly arrangement is easier to pay, it doesn’t help your pocket.
You probably won’t save much with this trick, but you will shave off a good amount every year, which is a lot if you think long-term.
5. Improve Driving Experience
Your driving skills and the record is one of the factors that insurers consider. If DUIs and other risky behaviours mar your record, you will be deemed a high-risk driver, which translates to paying more.
If your record isn’t clean, consider a more responsible and experienced person as a named driver on your policy.
You can also demonstrate your safe driving skills by taking defensive driving lessons. Doing that may lower your risk factor, reducing the cost of premiums.
6. Insure More Vehicles
Insuring one vehicle after another is more expensive than insuring them all in bulk. As such, if you have several cars, you can ask for a quote for them all and take advantage of the multi-car discount.
If you have one vehicle, the best way to go about this strategy is to ask friends and family if they can pool in under one cover. Basically, ask your insurer if that applies or if you will all need to be part of some club or association before you can get under a group plan.
It’s also possible to get a reduction if you buy more than one coverage from the same insurer. For instance, instead of getting health and business coverage from another provider, you can buy them from your auto insurance provider.
7. Consider a Low Mileage Discount
Car insurance can be more affordable for people who drive fewer miles. However, that depends on the insurer. You will have to shop for a company offering a low mileage discount.
The idea is simple, if you drive less, the chances of an accident or damage are less.
If your provider agrees to lower premiums for a specific mileage, it would be best to watch your annual mileage to avoid problems when filing a claim.
Conclusion
Insurers consider various factors that affect your premiums, many of which you can work around, such as getting more training, reducing mileage, avoiding traffic infractions, and installing anti-theft devices. These, among other strategies, can help you cut down your car insurance costs.
