How To Effectively Lower Your Car Insurance Costs
Car insurance can be expensive, but there are things you can do to find affordable auto insurance plans. Take a look:
Table of Contents
1. Insure Several Vehicles
You could end up getting a higher quote if you inquire per vehicle instead of insuring several drivers with the same insurer. Insurance companies may be willing to give you a discounted rate because they want your business. That means the more business you bring, the more likely they are going to give you a good deal.
To qualify, multiple drivers must be related by blood or marriage and reside in the same address. You can also get a discount even if you’re non-related as long as you jointly own the vehicle you’re insuring.
2. Keep Your Driving Record Spotless
It goes without saying that the more violations and accidents an individual has, the higher their annual premiums.
3. Enroll in a Defensive Driving Course
You may be given a discount if you complete a defensive driving course in an approved institution. You can even lower the number of points you have on your driver’s license by taking a defensive driving course.
4. Shop Around
People normally just renew their insurance policy to avoid the hassle, but you can find better rates if you shop around. Consider getting quotes from your insurance company’s competitor.
5. Don’t drive too often.
When you sign up for vehicle insurance, you will be given a form or questionnaire to answer. One of the questions would pertain to the number of miles you drive each year. By using public transportation, you may be able to cut a few hundred miles annually, which can help you get a discounted rate. Check the insurance company’s mileage thresholds to ensure you don’t end up wasting your efforts.
6. Pick a practical, inexpensive vehicle.
A Range Rover may be nice to have, but a luxury SUV can be more expensive to ensure than a sedan. Moreover, older cars are usually cheaper to insure than new ones.
7. Improve your credit score.
This may come as a surprise, but insurance companies also review credit ratings when determining insurance premiums. The idea is that people who keep their financial situations in excellent shape are more careful/responsible drivers.
8. Take out unnecessary coverage.
Deciding which add-ons to remove can be tricky because no one can be certain when an accident will happen. But if you’re driving a very old model then it may make sense to remove collision coverage because even if your car were to figure in an accident, then your insurer will most likely total your car. So if your car’s value is $2,000 and the collision coverage costs $500 per year, it may not be practical to buy it at all.
9. Install safety devices.
Your insurance agent can tell you which devices can lower your premiums. If your main reason for installing an anti-theft device is to reduce your insurance costs, make sure to take into consideration the cost of the device because it may be more expensive than whatever discounts you’ll get for installing it.