Car insurance is a necessary expense when you own a vehicle. It protects you, your passengers, and your vehicle in the event of an accident, but that doesn’t mean you have to pay more than necessary for adequate protection. Take advantage of these tips and tricks to reduce your automobile insurance premium without sacrificing essential coverage on liability, property damage, or personal-injury-protection.
Be a safe driver
Tickets an accidents directly impact your auto insurance premium. Drive at the speed limit, follow the rules of the road, and avoid getting points on your license. Insurance companies use these points against you to charge a higher premium. Try to get a ticket reduced or take a defensive driving course to get some of the points taken off. The direct cost of violations fades over time, but the best way to keep costs down is to avoid getting into accidents or receiving tickets, particularly moving violations.
Check rates first
If you’re in the market for a different vehicle, check into the costs of insuring it before you commit to purchasing. Vehicle insurance discounts depend on make, model, and even the color in some cases. Flashy and expensive cars are significantly more expensive to insure than something such as a mid-size sedan or family-size SUV. Four-wheel drive vehicles cost more money to repair, which also means they’re pricier to insure.
Increase the deductible
If you don’t want to remove comprehensive and collision coverage entirely, you can choose to increase your deductible as a step to save on car insurance. You’ll still have protection in case you’re at-fault in an accident, but the financial burden will be steeper if you do get into an accident. If you can’t afford to pay the minimum deductible, know that you’ll receive no reimbursement on your investment. Only increase it as much as you can realistically afford to pay. Play with the numbers a bit and look at how much increasing your deductible will save you from changing it. Think about eliminating the coverage altogether if your vehicle isn’t worth that much money due to age or condition.
Fix your credit
Insurance companies factor your credit score into their determination when giving you a quote. Those who have poor credit are a greater risk and pay higher premiums as a result. Consider this one of many incentives to improve your credit. Pay all your bills on time, reduce your credit card balances, avoid too many credit inquiries, and only open new accounts when necessary since older accounts are more favorable to your score than recently opened ones. Keep in mind that credit takes time to build up so you won’t see the effects immediately, but the benefits will surface in the future in more ways than just on your insurance policy.
Don’t settle for the first quote that you receive when shopping around for your insurance policy. It can be a hassle to enter your information repeatedly into websites, but it’s worth taking the time to devote to the process for maximum savings. Rates vary significantly from one company to another. It pays to take the time to sit down and compare rates for at least two, but preferably more, companies to get the coverage you want at a price that is in your budget.