- January 5, 2021
- By Michael
- In Blog
There are multiple ways of reducing car insurance. Many people believe that having a consistent driving record or higher credit score can ensure a lower auto insurance rate. However, there are various other ways through which you can negotiate a competitive premium for your vehicle.
1. Look around before choosing a vendor
Many insurance companies are providing the same coverage with different rates of premium. Before you choose your vendor, get quotes from multiple vendors to come up with the best deal. State agencies also help provide a comparison of insurance premiums. Similarly, there are comparison websites that give a premium comparison of various vendors. Ask your family and friends to recommend someone they have previously worked with as well. Sometimes the best option is right there inside our friend’s circle. Talk to agents, search online, get a few quotes, compare prices and coverage, and then choose your policy.
2. Request for higher deductibles
Before your insurance policy starts, you pay deductibles. For instance, if you pay $500 instead of $200 as deductible, your regular premium will decrease by 15% – 30%. If you can increase that by $1000, it will further reduce by 40%. Before making that decision, you must ensure having a cushion for paying in case of any claim. This option can only be taken by people who can afford to pay more at the time of insurance policy purchase.
3. Compare insurance costs before buying a new/used car
Car insurance is based on various factors associated with the car, such as its price, repair cost, safety record, theft likelihood, and car’s current condition. Vendors offer a competitive rate to more secure cars and less prone to theft. Similarly, new cars would automatically need fewer repairs and, therefore, fewer claims. For used vehicles, one must look at the car’s price compared to the premium charged for its insurance. Your vehicle must worth ten times more than the premium of insurance to make this a viable decision. Otherwise, it wouldn’t be cost-effective for you to buy insurance for a car that costs less than insurance.
4. Keep the same vendor for different insurances.
In case you already have house insurance, try to keep the same vendor for car insurance. This rule also applies if you have more than one car. Many vendors reduce the insurance rate for customers who buy multiple insurances from them, called multipolicy discounts. However, if that is not the case, you must go around and shop for a better deal.
5. Seek out different discount options
Many insurance providers offer various kinds of discounts under different names. Seek out any type of discount you can claim under the vendor’s policy options. It will substantially reduce your insurance premium. Look for deals such as:
- Good Credit Record
- Low Annual Mileage
- Long-Time Customer
- College Students away from Home
- Defensive Driving Courses
- More than 1 car
- No Accidents in last 3 Years
- No Moving Violations in the last 3 Years
- Student Drivers with exceptional Grades
- Antitheft cars
Use these tips to score a better deal!