Owning and running a car has its advantages and disadvantages. There are lots of expenses attached to owning a car, and one of the biggest is car insurance. This is most likely an inevitable expense. Besides, driving an uninsured car is illegal, and it is a crime punishable by law, so it’s not worth the risk.
As a car owner, you know how expensive car insurance can be. Many car owners pay exorbitant rates annually on auto insurance. Add that to the cost of maintenance, repairs, and gas, and you have hefty monthly expenses to cover. Fortunately, there are many ways to save on car insurance.
Here are some helpful tips on how you can lower your car insurance premium.
1. Comparison
If you think a large part of your monthly income is going into car insurance, then you need to re-strategize and fix things up. Thankfully, there are countless insurance companies out there, so it’s possible you could get the same policy from a different company for a far lesser rate. The big question is, how?
The best way to find cheap car insurance is to shop around. Get quotes and estimates from different insurance companies. All you need do is to key in basic information about yourself, vehicle and the right coverage for you in the search box. The system will display results and quotes related to the info provided. Narrow your search down to 5 companies of choice and contact them to know more about their policy.
And if you still want to continue with your current insurance company, you can then bargain with them using the better offer. No company will be willing to lose a customer. For sure, they will provide a policy that can match the offer or at least drop their prices just to keep you.
2. Choose the Most Important Coverage
When it comes to auto insurance, the most important coverage is liability insurance, which covers personal injuries and damages caused to other road users. However, some drivers might want to take it up a notch by paying extra for other coverage which includes collision coverage which covers car repair cost after an accident, and comprehensive coverage for loss due to theft and other major disastrous damages.
Paying for additional coverage will definitely increase the cost of insurance. It is therefore important that you pay for the coverage you need only
3. Good Driving Record
Your actual driving record impacts your insurance rate. If you’ve been involved in many accidents recently, be prepared to pay a higher rate. Also, the rate will likely go higher if you have violated driving rules and regulations recently. This is an indication that you are more likely to be involved in an accident within the shortest possible time. The best way to enjoy lower car insurance rate and save more is to learn to drive safely by reducing your speed limit and avoiding distractions. Do not drink and drive.
4. Car Type
Another important factor that affects your premium is your choice of car. The higher the price of your car on the market, the higher your insurance rate. This is because expensive cars cost more in repairs after being damaged in an accident, not to mention the cost of replacement. So if you’re shopping around for a new car, it is important that you consider insurance coverage and set aside a budget for it.
Before opting for any policy, make sure you feel comfortable working with the company. Get as much information as possible to see how they measure up. Also, read reviews about them