Can you call yourself an excellent driver? After driving cars for a couple of years, people think they have mastered this art and start calling themselves professionals. Unfortunately, the moment you hit the road, you make yourself and the vehicle vulnerable to accidents. Even though you are a vigilant and attentive driver, but other people are always in a rush. As a result, the accidents increasing rapidly every passing day.
With the rising inflation and cost of vehicles, no one can afford to foot hefty repairing bills. And this where the option of car insurance kicks in since it the only way to protect financial liability. From significant accidental repairs to minor scratches – car insurance provides a cover for everything. Thus, if something unfortunate happens, you won’t have to drown yourself into loans to handle the expenses.
However, people who are already on a tight budget can’t manage another premium deduction from salary. Surprisingly, you can get car insurance without adding any burden to your wallet. Are you wondering how? Here we are revealing some tips to save money on car insurance.
1. SHOP AROUND & SURVEY THE MARKET
In this tech-savvy world, Google helps people make every decision. Instead of entirely relying on Google to find you a car insurance company, pull off some research. Conduct a market survey and list down the top-notch insurance companies. Go through their policies, deductibles, premiums, and shortlist the ones that fit under your budget. Nevertheless, going with the lowest-price company isn’t the wisest decision because many other factors come into play.
When shopping around, check the site rates and financial strength of insurance companies. After all, you have to see whether the company is capable of paying an insurance claim. Once you have quotes available, compare car insurance with other companies. It will help you determine the company’s creditworthiness and ratings, letting you make the best decision.
2. INVEST IN SAFETY FEATURES
Do you want low premiums? Some anti-theft devices in the car can lead to potential savings on the annual premium. You can get car alarms, back cameras, and security locks to eliminate car theft. Similarly, invest in some safety equipment that can reduce the risk of injuries – automatic seat belts, running lights, additional airbags, etc. You can also ask the insurance companies about the devices that can lower premiums. It might seem like an extra expense for the sake of decreasing premium, but it adds value to the car. Hence, it will be worth all the trouble and expense.
3. IMPROVE CREDIT RATING
In the eyes of car insurance companies, drivers with stable credit ratings have fewer records of accidents. After all, the driver’s record plays a crucial role in determining insurance costs. A driver with a history of accidents would be expensive for the company since he would make frequent claims. Similarly, a driver with clean records can be a profitable client. Thus, insurance companies consider credit ratings when determining premiums.
It demonstrates the responsibility of insurers. If they are responsible for their personal life, the chances of filing claims are lower. Therefore, ensure your credit score is high enough to get you low premium rates. If it is below par, try to improve it. You can make purchases through a credit card and foot the bills timely or keep balances low on the card. Wait until you achieve a stable score and then secure car insurance.
4. USE MASS TRANSIT
Once you sign up for car insurance, the company will hand down a pretty long questionnaire. It would be all about the number of miles you drive, your usual commute, income, etc. Your answers will determine the premium you would pay. The premiums are higher for people who drive more than someone who only goes one mile a day. With the help of mass transit, you can rack up fewer miles, meaning you have to decrease your mileage before incurring a discount. Inquire your insurance company about the mileage thresholds to ensure the premiums vary or else your efforts will go waste.
5. COMBINE INSURANCES
The majority of insurance companies offer multi-policy discounts. For instance, if you buy home, health, and car insurance from the same place, the company can provide a comprehensive package. It would be way cheaper than purchasing all policies separately from different companies. Likewise, you can pinch some pennies by insuring all your vehicles in one household policy. Otherwise, feel free to insure your driving-age family members on the same plan.
However, do your homework before calling the shots. Some companies might dodge lower benefits with lower costs without informing you about it. For instance, your health plan might not include prescription coverage. Therefore, if you consider combining insurances, thoroughly check all the plans and policies to ensure you are signing up for a prudent deal.
6. INCREASE YOUR DEDUCTIBLES
Do you know what a deductible is? With annual premiums, you have to pay some money as a deductible when filing the insurance claim. Depending on the car insurance policy, deductible ranges from $250 to $1000. It has an inverse relationship with premiums, meaning the higher the deductible, the lower the premiums, and vice versa. Thus, consider the effect of high deductibles on your premium. It can make the annual premium lower by a significant percentage, putting money back into your pockets. It is the most excellent choice for people who don’t file smaller claims.
7. RESEARCH ADDITIONAL DISCOUNTS
As the insurance industry is growing, the competition is intensifying, especially in car insurance. Companies want to attract clients, and nothing lures customers more than a discount. Hence, inquire your company about any promotional offers or introductory discounts. You can gain the benefits of student discounts or old-age benefits if you have retired. Likewise, there are different offers for people belonging to business groups.
Some companies can offer you to pay an annual or six-month premium altogether at a lower price. Moreover, you can get membership in particular organizations, clubs, and groups that offer discounts. If you have time, look for non-monetary offers, such as agreements on e-bills and simple documentation. However, don’t get swayed by the discounts; always compare the discounted prices with regular ones to determine the potential savings.
High deductibles and premiums are the two things holding people back from getting car insurance. Indeed, they eat a massive chunk of income, but fortunately, there are multiple ways to save money on it. Alongside familiarizing yourself with the insurance industry, you have to understand how it works. If you are well-versed with all the protocols and policies, your knowledge can help you win the best deal.