How to save money on auto insurance? How to keep my auto insurance premiums low? These are the questions that everybody has in mind but very few people know the answer to these.
Auto insurance (or vehicle, car, motor insurance) is no longer a choice and is mandatory for all vehicles whether private or commercial. Different types of car insurance coverage’s are available to help protect you, your passengers, and your vehicle if you’re involved in an auto accident – like auto liability coverage, comprehensive car insurance coverage, collision coverage, car rental, and travel expenses coverage, uninsured and underinsured coverage, medical payments coverage, emergency road service coverage, personal injury protection, rideshare driver coverage and damage to someone else’s property. some types of coverage are mandatory by state law, while others are optional.
Listed below are tips you can follow to lower your car insurance costs.
1.Compare Car Insurance
Prices vary from company to company, so it is advisable to shop around for the best car insurance. Get at least 3 to 5 price quotes based on your requirement. You can call companies or their local agents directly or research on the Internet. By doing little research you can compare car insurance policies to find the plan customized to your needs. Whether you are looking for a comprehensive car insurance policy online, rental car insurance, full coverage car insurance, or non-owner’s car insurance, all the information is available in a few clicks. You can easily compare premiums across all the top companies and get the best rates. Many customers can save up to 60%.
2.Employing Safety Features or Aids
Installing safety features like anti-theft device, gear lock, steering lock in your auto helps in lowering your premiums by a minimum of 5%. Do not forget to inform your insurance company about the safety features devices you have installed and watch your premium go down. Many insurers offer discounts for features that reduce the risk of injuries or theft. For example, an anti-theft device (ATD) could help lower your premium by up to 20%, and daytime running lights – 3%, Anti-Lock Brakes- 5%, Airbags up to 23%.
Choosing higher deductibles can reduce your auto insurance premium. A deductible is what you pay out of pocket when you make a claim. But, you should pay only as much as you can afford. For example, increasing your deductible from $100 to $400 could reduce collision and comprehensive coverage costs by 10 to 30 percent, while a $1,000 deductible can save up to 40 percent or more.
4.Good Driving Record
One of the best and simplest ways to keep a check on your auto insurance costs is to have a clean driving record. Being a good driver pays off in the long run! If you haven’t had tickets or accidents or any moving violations in the last three years you may qualify for a safe driver discount of up to 20% or more.
If you have an old car, then having full-coverage insurance does not make sense, in such cases, a limited liability plan might be better. Dropping collision and/or comprehensive coverage on older cars are other options to reduce the premium. If your car is not used very much, then even third-party liability plans provide sufficient coverage. Reduce the add-ons coverage which is not required.
6.Buy All Insurances From The Same Insurer
If you have multiple policies like Renter’s, Homeowner’s, Auto insurance then bundling these policies can save money. You may also get a discount or reduction if you have multiple vehicles insured with the same company.
7.Ask For Discounts
Most insurance companies offer discounts on auto insurance policies. The discounts are provided based on various factors like the profession of the auto owner like educators, military personnel, age of the policyholder, driving history, professional association membership. You have to proactively ask your insurance provider for a review of discounts and ensure you’re getting all the discounts you qualify for.
Companies also offer discounts if you have not had any accidents in 3 years, no moving violations in 3 years. You may also get a discount if there is a student driver with good grades, has taken a driver’s education course, or for college students away from home. Some insurance companies also offer a discount to their long-time customer.
8.Full Premium Payments
Many insurance companies offer a discount for an upfront payment of premium. Some companies offer a discount for Auto payments of premium instead of manual payments.
9.Avoid Making Small Claims
If You haven’t made any claims for your policy year, you are eligible for a no-claim bonus (NCB) for every claim-free year. Paying for small expenses like a broken tail light, scratches, minor damage, etc may be cheaper compared to the claim bonus benefit.
10.Transfer Your Bonus
Not many people are aware that auto insurance is linked to the person who buys it, and not to the car. So in case you decide to buy a new car you can transfer your bonus to a new policy and avail less premium
11.Maintain Good Credit Score
Having good credit history pays even for auto insurance. Most insurance companies use credit history to price auto insurance policies. Credit-based insurance scores try to predict the likelihood of insurance claims being filed that will cost the company more money than premiums they charge. Companies also believe people who effectively manage their credit have fewer claims and pay bills on time.
12.Low Annual Mileage Discounts
Most companies offer discounts to auto owners who drive a lower than the average number of miles 7,500 miles per year. Low mileage discounts can also apply to drivers who carpool to work thus reducing overall mileage. Working from home also results in less driving. Discuss with your insurance company about your current driving habits and avail discount.
Some companies offer discounts if you get insurance through a group plan from employers, through professional, business, and alumni groups, or from other associations. Ask your employer and inquire with groups you are a member of to see if you qualify.
14.Take A Defensive Driving Class
In some states, insurance companies may provide a discount for those who complete an approved defensive driving course. While some insurance companies offer these discounts to teen and/or senior drivers only. Do check with your insurance provider if they offer this discount.
15.Good Student, Mature Driver Discounts
Students under the age of 25, securing a grade of a “B” or better, may qualify for a good student discount on car insurance up to 15%. Mature drivers 55 years or older may get up to a 2% discount if they have completed a state-recognized defensive driving course.
To Sum Up:
Car insurance is mandatory evil in the USA. Taking time out and comparing insurance policies, looking for discounts before buying or renewing auto insurance will help you in buying a policy that suits your budget.
To get the best rates on an insurance plan keep all the above-mentioned points in mind and you will surely end up with savings. Be proactive, search online, talk to agents and you will surely get the perfect insurance coverage for your automobile. The key to savings on auto insurance is not just the discounts, but the final price.