Purchasing car insurance is something that possibly doesn’t have any other alternative. Even if you just buy a car and lock it up in your garage, there’s absolutely no guarantee that a sudden natural disaster will not damage your car. So you must, no matter what, buy car insurance, plus it is compulsory by law in most of the world.
But with the cost of everything shooting up and living becoming more expensive by the minute, who wouldn’t like to save up a little here and there?
Here, I will discuss a few tips which would help you save up some of your hard-earned money, without affecting your insurance.
Tips to save more while purchasing a Car Insurance
1. Instead of one by one, go in a group
No, I don’t mean for you to mob protest outside the insurer’s office, however, I want you to understand that you can save more if you purchase insurance collectively.
If you get a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle, but, if you inquire about insuring several drivers or vehicles with that company, the Insurance companies will offer what amounts to a bulk rate because they want your business. You might even make a deal with your insurer that might fetch you some great discounts, all you have to do is redirect your friends and members of your family towards them.
However, there are a few things to look out for. You can always ask your insurance agent to see if you qualify for multiple insurance schemes. For instance, the company would want all the drivers to be living in the same area or the drivers might have to be blood relatives or part of the same family, or maybe live in the same house, or be married to each other. Two unrelated people may also get a discount, but the company would want for them to jointly own the vehicle.
We know that insuring teens is more expensive, but if your child’s grades are a B average or above or if they rank in the top 20% of the class, you may get a good student discount ranging from 1% to almost 35% on the coverage, which generally lasts until your child turns 25. So, carry proves of your child being an excellent student while you go to purchase car insurance for them.
2. Mindful Driving Cuts Costs
In other words, be a safe driver and try to keep a clean driving record. It isn’t always possible to be absolutely mindful of your driving, but the more mindful you are, the more accidents or moving violations you’ll be able to avoid. And this will cause raising your insurance rates. You can avail safe driver discounts between 10% and 23%, depending on your driving record.
3. Shop Around for Better Premiums
You definitely do not buy the first thing that you see in the market, you must always check around and look for better and more reasonable quotes. Never be in a hurry while purchasing car insurance or If your policy is about to renew and the annual premium has gone up, consider shopping around and obtaining quotes from competing companies.
A little pro tip here, every year or two try to obtain quotes from other companies, just in case there is a lower rate out there.
However always remember that cheap doesn’t always mean good, and going with the lower-priced company isn’t always the wisest decision. That is primarily because the insurer’s credibility should also be considered.
To run a check on a particular insurer go online and consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. After all, what good is a cheap insurance policy, if your insurance company doesn’t have enough funds to process your claims?
4. Try to Use Mass Transit
The questionnaire your insurer provides you before deciding your insurance quotes has a very important question that determines your premiums by a huge margin. The question it asks usually revolves around to understand the number of miles you drive the insured car per year.
If you use your vehicle to commute two to three hours to work every day, you will generally pay more in insurance premiums than someone who only drives one or two miles a day. If possible, try to use mass transit in order to reduce your average driving span, because you will have to decrease your mileage significantly before you might become eligible for a discount. And moreover, you will contribute to saving the environment as well, because mass transportation causes much lesser pollution as compared to personal vehicles. So go ahead and ask your insurance company about the company’s different mileage thresholds and maybe, buy yourself an ice cream with some of the money you save from your premiums for choosing the more environment friendly way.
5. Increase Your Deductibles
When selecting car insurance, you can choose a deductible, which is basically the amount of money you agree to have to pay before the insurance company picks up the tab in the event of an accident, theft, or other types of damage to the vehicle. Depending on the car insurance policy, deductibles typically range from $250 to $1,000. The higher the amount of deductible you opt for, the lower the premium of your insurance. Talk to your insurance agent about it and you might be able to put some money back in your pocket next time you pay your car insurance premiums.
These are some very basic tips that you can implement to save a few bucks on your car insurance premiums. Be a reasonable consumer and always remember to make calculated decisions.