5 Ultimate Guides to Saving on Car Insurance
Owning a vehicle is a significant financial investment, so you want to ensure you're protected in case of an accident. Thus, car insurance is not an option but a necessity in dealing with road uncertainties. But whether you have a complete comprehensive package or limited third-party liability protection, it's vital to shop for the best deals. If you're wondering how much is car insurance and what you can do to lower it, continue reading.
Shop Around and Compare
People usually put in a lot of effort when shopping around for a new vehicle. They compare different makes and models, taking them out for test drives. Most go out of their way to find the best financing rates. In contrast, buyers are less careful when insuring their new vehicles.
If you want to save money on car insurance, don't merely go with what your car dealer tells you. Instead, conduct due diligence and research. You will find several types of coverage and promotions out there, letting you pick only what you genuinely need befitting your lifestyle. Bear in mind that insurance premiums consider various factors like the following:
- type of policy
- car model
- where you live
- your driving history
These factors can affect your premiums, so shop around and compare different insurers to see who can give you the best rates. And, of course, working with a reputable company is essential to ascertain it would be a breeze should you need to file claims.
Take Advantage of Bundle or Multiple Car Discounts
Do you have more than one vehicle? If so, consider taking advantage of multiple car discounts. You will generally get a higher quote for each single or individual car policy versus insuring several vehicles together.
It's common for insurance companies to offer bulk discount rates as an incentive for signing up with them. After all, they want your business, so they are more likely to provide incredible deals to get more of it. You qualify for a multi-car policy if you live at the same address and are related by marriage or blood.
Alternatively, you could consider bundling up your insurance expenses. For example, some providers will offer a significant discount for those who purchase home insurance, accident insurance, and car insurance. Bundling up coverage can provide considerable cost savings.
Pay Attention to Your Driving
Everyone knows that paying attention to the road can save lives while you drive. But unfortunately, a lot of people are distracted by their cell phones. Engaging in reckless driving puts you at risk of encountering more accidents or committing driving offenses. These raise your insurance premiums, with more violations equating to even higher costs.
Be a safe driver if you want to enjoy lower insurance costs consistently. Keep your eyes on the road and avoid distracted driving such as:
- Using the cellphone
- Driving under the influence
- Eating while driving
This is not even an exhaustive list, but as you can see, many types of behavior can hurt your driving records. Consequently, this will affect your car insurance premiums because you're a considerable risk.
Take a Driving Class
In some cases, car insurers provide a discounted rate for those who take an accredited defensive driving program. Driving courses can prevent the violation from going on record in some areas. Taking safety driving and accident prevention classes are highly effective in preventing road collisions.
Speak with your prospective insurance provider about this so you can take the right program. Even if you only receive a minimal discount, it's well worth it to attend because you're learning safe driving techniques that could help you make life-saving split-second decisions on the road.
Consider Various Payment Schemes
Finally, most car insurance companies offer monthly, quarterly, or annual payment schemes. Usually, staggered payments that break the balance into a series of future payments will increase the costs. In contrast, opting to pay the annual lump sum lowers your bill as you let go of the finance charges for each payment term. In time, all these seemingly small finance charges will add up.
If you don't have the lump sum in your budget, an alternative money-saving tip is charging your car insurance premiums on a credit card with a solid cash-back rewards program. Just make sure you stay diligent in paying the balance to avoid interest surcharges.
As you can see, there are many ways to navigate car insurance payments. In most states, the law mandates that you have basic insurance coverage. With proper research and planning, you can reduce your insurance premiums and get the peace of mind you need while you're behind the steering wheel.