If you own a car, you understand how costly it can be to get your car insured. An average car insurance plan costs about 10% of the car’s total value. Surprisingly, you may even pay more premium rates every year than you do for gas or maintenance. Despite its costly aspect, car insurance is a necessary investment to undertake. It secures your car from accidents, natural disasters, and theft among many other expenses.
That said, there are many factors which determine your insurance premium rates. Some can be controlled while others are beyond change. Knowledge of your auto policy is the key to controlling some of the insurance costs. You can either modify the policy to lower the premium rates or adjust your ways to attract more insurers. Whatever the way you choose, the guide below provides the many ways you can save on your car insurance.
- Shop Around
If you feel your car insurance plan is too expensive, then you may not be far from the truth. There are many different insurance providers and each has a different way of calculating their premium rates. Chances are you can get the same coverage plan from a different insurer for a few dollars every year. Now, which insurance company will you get the policy from?
Since car insurers are different, none of them provides the best plan for everyone. Try to compare rates from several different providers in order to get the best rate on your auto policy. This is the right time t review your car insurance especially if you have used the same policy for years. By getting different quotes from other companies, you will save a great deal of money on your policy.
- Take defensive driving
With defense driving lessons, you prove a better risk to many car insurers. The car insurance company rewards monthly discounts on such special cases hence saving you money on your policy plan . In addition, defensive driving skills are essential in controlling the risks of having an accident. As a driver, you are well equipped on ways to react when confronted with risky situations. This is one simple way to save money on your car insurance.
- Look into group insurance
We all understand that it’s possible to get a health insurance policy using your company. What many don’t understand is that the same approach can be used when buying car insurance. A group insurance policy comes with lower premium rates since it’s economical for insurance companies to cover a huge group. Also, this policy comes with additional bonuses. For example, there are special discounts on policies covering repair, rental and towing services. The only drawback with these plans is that you may lose your cover upon changing your job. Also, you don’t decide on your specific insurer.
- Drive Safely
Your driving record speaks a lot when it comes to car insurance plans. With a good record, your premium rates will be lower. The opposite is also true. You will pay higher rates since your chances of getting into an accident are obvious. To stay on the safe side, just drive safely and maintain a good record. Always stay sober when driving, keep the speed down and avoid distractions.
- Sell the sporting car
There comes a time you need a car that is affordable to an insurer. Insurers calculate the premium rates depending on your car model. Cheap cars will attract less expensive insurance coverage plans. However, you must cough extra dollars for your shiny sports car. Therefore get a reasonably priced car in order to save money on your insurance plan.
- Raise your policy deductible
A deductible is the amount of money you pay when filing a claim after an accident. You can, therefore, lower your premiums rates by increasing the deductible. Let’s say you require car repairs worthy $3000 and your deductible is $1000. You will have to pay $ 1000 for the repairs and the insurer covers the rest. Luckily, you can do it in a different way. Set aside $400 from the savings every year for repairs. After a few years, the funds will be enough to cater to the repair expenses. All money saved beyond there are your own savings for other things.
- Get rid of unnecessary coverage
The law specifically requires a liability coverage plan for car insurance. This plan covers for damages and accidents. It’s your personal choices to pay for extra plans such as the comprehensive coverage. What you don’t know is that the extra cover may heavily cost your pockets. Therefore drop the unnecessary coverage and save the money to cater for repair costs. This way, you will have saved a lot of money on your car insurance.
The bottom line
When shopping around for the best deals, consider your personal needs and not the list if discounts. Get the right plans which take into consideration your car, age, and place of residence.