Once you own a car, paying for auto insurance is inevitable.
You must insure your car against collision, vandalism, and damage. Some car insurance companies take advantage of ignorant clients and charge exaggerated premium rates.
If you’re not informed, you will pay high rates thinking that’s what everyone is paying. You don’t have to pay more than you should if you know the average rates.
So, are you sick of overpaying for auto insurance? Learn seven easy and smart ways to save money when shopping for and buying car insurance.
1. Do Your Research
Some car owners end up buying more than they should because they didn’t carry out enough research on available options before committing.
Insurance companies vary in their prices. The price difference will shock you when you start comparing quotes from several companies. It’s easy to find the best rates with a free online service that can compare car insurance quotes with a few simple steps.
You should take your time to shop around, go online, ask friends, and talk to customer service representatives. Get at least three quotes and choose the one that suits you best.
Don’t settle for anything you’re not comfortable with. If in doubt, ask as many provocative questions as you can and get satisfactory answers. Don’t always go for the lowest prices.
Price is not the only important factor here; the company’s reputation also matters.
2. Take Advantage of Discounts
Discounts can save you a ton of money if you know how to find them.
Look for any discounts, promotions, and offers and grab them. You can even get safe driver discounts if you drive carefully throughout the year.
Other discounts include accident-free discounts, affinity discounts, good student discounts, low mileage discounts, and military discounts. You can also save by adding another car to your insurance so that you get a discount on multiple auto insurance.
If you’re not sure about the available discounts, you can ask insurance brokers to explain them to you and find what’s suitable enough. The fact that an insurance company offers generous discounts does not mean they are the cheapest.
Don’t get easily lured when other factors are not favorable.
3. Drive Safely
Safe driving is an easy and smart car insurance cost-saving tip.
If you avoid traffic tickets and accidents, you won’t have to pay premium rates.
Some insurance companies will give you devices that monitor your driving habits. These devices come with smart technologies that will indicate everything from idle time, driving behavior, and hard stops.
If you see that the results are not good enough, you can change your driving habits to help decrease your costs.
If your vehicle comes with car safety devices, such as airbags and anti-theft technology, most car insurance companies will apply a discount to your plan.
Inform your insurer if you have these devices installed to save on the costs.
4. Get A Plan With A Higher Deductible
You should not let high deductibles scare you.
If you get a high deductible, you will lower your insurance premium. Make sure to compare the deductible levels with every company. Consult with your provider to find out how much you will save if you raise your deductibles.
Make sure you have enough money set aside for you to pay for the high deductible in case you make an insurance claim. You can open a savings account to cover the cost of the higher deductible.
5. Drop the Optional Insurance
Consider dropping coverage you don’t need to save money.
For instance, you can drop things like collision or comprehensive coverage if your car has low value.
These add-ons to your insurance plan seem valuable, but if your car is stolen, vandalized, or gets into a crash, the company will only reimburse a small amount based on the value of your car, meaning a loss for you.
Evaluate if it’s worth paying for any add-ons and see what value they add. If it’s something that doesn’t add value to your plan, drop it.
6. Get a Vehicle That Will Cost Less When Buying Car Insurance
One of the things that determine how much you will pay for auto insurance is the type of car you drive.
Some cars attract high coverage costs that you might not be able to afford. Flashy and expensive cars will always attract high insurance rates.
Do your research and compare the cheapest and the most expensive cars to insure. You can call an insurance agent to help you do the math if you’re not sure about it. Based on your findings, you can then choose whether to buy it or not.
7. Check your Credit Score
Most insurance companies will check your credit history when setting your insurance rates.
A poor credit score will likely mean that you’ll pay more in premiums. The reason for this is two-fold: first, a higher credit score makes it more likely that you’ll pay your insurance premium on time and not let it lapse. Studies have also shown a correlation between lower credit scores and the number of claims filed.
Insurance companies always hope that you will not have to make claims, so if there is any indication that you’re likely to make claims, they’ll charge you more.
An excellent way to save on premium costs is to work on improving your credit score.
It’s Possible to Save Even More
Saving on the cost of buying car insurance is possible if you follow these tips.
Now that you know the ways to lower your costs, you can save money on your insurance. Ask your agent about ways to lower your premiums to see if they offer discounts.
Saving money on car insurance is one of the many ways you can manage your finances and save money. If you want to learn more money-saving tips, check out the rest of our blog today.