If you are a vehicle owner, you should not – or probably cannot, in some states – do without a car insurance policy. Despite the best care and maintenance, you never know when your vehicle gets damaged in an accident, stolen or mangled due to natural disaster etc. In such events, you will thank the day you opted for auto insurance. However, such policies can be quite expensive – especially if you need the maximum amount of coverage for your vehicle. Find out how to save money on your car insurance policy.
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Pick an appropriate car
If you wish to buy a new car, consider how the vehicle of your choice will have an impact on your insurance and premiums before the purchase. Insurance costs get higher with the buying of high-performance cars, large SUVs etc. With a premium variety vehicle, you might have to pay 2,200USD more every year. That amounts to over 11,000USD in 5 years. A safer, less pricey sedan can be a better option for you.
Increase your credit rating / score
Higher credit scores can reduce your insurance premiums. Big credit reporting firms such as TransUnion, Equifax and Experian, can give you a free report every year. You should try to immediately fix any error that you spot. Pay your bills timely, as it makes up 35% of your credit score. Reduce the balance amounts in a steady way. This will show your insurance agency that you are responsible with your credit and payments.
Increase the deductibles
If you increase your deductible to 1,000USD from 500USD for specific policies, you should ensure that you will have an additional 500USD on hand if you wish to file claims or if an accident or mishap occurs. Your savings can be reduced if you do not. With a higher deductible, you will not have to opt for insurance cover for the various dents in bumpers or chinks in car door. You should also consider your personal driving safety record. You might not wish to take this route in case you have a habit of landing up with accidents.
Let go of some coverage
You do not have to maintain complete vehicle coverage any more, in case payment has already been made for your car. You can save money by letting go of some types of covers if yours is an older model of less worth. Collision coverage and Comprehensive coverage are two common types of coverage that people often give up. Although it can be argued that keeping them is a better decision, raising those specific deductibles seems like a wiser idea. Roadside assistance and towing assistance can also be given up.
Compare your policy
Not every car insurance agency is the same, and it is better to compare a minimum of 3 policies before taking a final decision. Get assistance from an independent insurance agent or shop online to make the process smoother. When you have to save money on car insurance, adequate research and knowledge is necessary. Compare the features, amount of coverage, insurance premium rates etc before you choose a policy. It is also important to know whether the insurance agency is backed by a credible financial organization.
You can also try other useful ways to save on insurance cover by undergoing a defensive-driving course, using public transport every now and then or reducing the amount of driving distance to reduce mileage, opting for discounts if you have a good driving history etc. If you are a student and have a good academic record, you can use it to your advantage to lower the insurance premiums on your policy.