Consider The Car That You Drive
Educating yourself about the car’s expenses including insurance at the very beginning of the car-purchasing decision is very important. Ask around for the insurance costs of the car you wish to purchase and consider your budget. A luxury or sporty car can be several times more expensive than a regular car. Also if the car model is in demand by car thieves or has been involved in more accidents statistically, expect to pay more. Comes down to buying the car that makes sense for your wallet.
Get Multiple Quotes
When looking for car insurance for your car, you have to shop around. Contact several insurance providers and do some kind of comparison study before committing. There are also lots of insurance brokers online who can actually do this you. Not doing this is probably the biggest mistake car owners make. You can be very surprised at the differences in the car insurance market. A lot of folks are just too lazy to do the research.
Maximize Your Deductible
The insurance deductible what you will pay in an insurance claim before the insurance coverage kicks in. When you have a deductible, you have to come up with that amount before a claim gets paid by the company. The higher the deductible, the less insurance you have to pay
Consider the age of your car and decide on what sort of repairs you will be willing to cover yourself before filing a claim. Studies have shown that you save around 8% by raising your deductible from $500 to $1000. Play around with the insurance calculators to see how it will affect the bottom line.
Consider Combining policies
Most insurance companies noways offer insurance covers for different categories. If you have or normally get home insurance, health/travel insurance, or even life insurance, check if bundling the policies will get you a discount.
Dealing with a single insurance company for all your insurance needs may also simplify your finances. Make sure it makes sense though as some insurance covers are for multiple years and you may not want to be tied down to the same car insurance company until your other insurance cover expires or is due for renewal.
Get All The Discounts You Can
There are many discounts offered by insurance companies for things such as having a long safe driving record, having proper security and safety devices in your vehicle, and even belonging to a certain group/affiliation. Make sure you take advantage of all the ones available. See which ones are offered by the insurance company you are considering. These may include:
- Being accident free
- Security devices such as alarms, immobilization devices
- Where you park
- Safety devices such as winter tires during the winter months
- Being a senior
- Being a member of a certain organization/club/university alumni etc
Pay by Distance Travelled
Some insurance companies may allow you to pay insurance by the distance you drive. This could be very beneficial if you do not drive long distances to work, school or other place that you need to get to. You should inquire with the car insurance company to see this can work for you.
Reduce Your Coverage
In the case of regular/standard vehicles (not luxury/rare/exotic cars), as your car ages, the need to insure against damage to the car reduces. Just like raising your deductibles, you may consider reducing the coverage. In some cases, especially if the car is quite old, the payments of the premiums and deductibles may be much higher than the value of the car. Re-evaluate your insurance needs every year to ensure that you get the best deal for your premiums.
Drive Safely
This is a fairly obvious but an understated fact. The safer you drive, the lesser the chances of something happening to you and your car on the road. The longer you maintain this record, the lower your premiums will get with the coming years.
Many insurance companies nowadays have progressive insurance offers where you plug a device into your car or install an app into your phone. The device/app monitors certain driving habits such as duration, hard stops, daytime vs nighttime driving etc.
Consider opting into such a program and you may see a significant decrease in the cost in your car insurance.
Watch Your Credit
Some insurance companies can factor in your credit history while calculating your premiums. While credit history does not have much to do with driving, correlations can be drawn by how you handle your finances. Someone with a higher credit history is more likely to ensure that all their insurance needs are covered and is more careful when dealing with claims.
