Many of the car owners we’ve met have one simple goal: to lower their insurance premiums. Although all of us need car insurance, it doesn’t mean that we have to pour a fortune into it. Before you purchase a policy, make sure that you have done your homework and a little research. Here are some tips on how you can reduce the cost of your insurance while enjoying decent coverage:
Always ask about discounts
The easiest way to lower your insurance costs is by asking for discounts. Some insurers will offer a special discount if you have a clean record or if you’re purchasing the policy from an accredited dealer. Also, you can secure discounts if your car has low mileage, you have anti-theft devices in place, or you have updated driver’s ed.
Also, you can secure great discounts if you own more than one car and you’re purchasing the two policies from the same insurer.
Shop around and compare prices
Don’t settle for the first insurer that will give you an offer. Shop around and compare prices between auto insurance companies. This way, you can look for the best value without paying a lot on premiums.
You can call insurance companies to ask for free quotes. Most of them are willing to accommodate. If not, take it as a sign of poor service and look for another one.
Opt for a higher deductible
If you don’t want to pay exorbitant monthly premiums, you might as well opt for a higher deductible. Deductibles are the amount you’re going to shell out when filing for a claim. The rest will be paid for by your insurer.
Technically, the bigger your deductible is, the lower the premiums will be. Still, this has pros and cons that you have to weigh first. In the event of expensive car damage, you’d have to shoulder a large chunk of the cost.
Look for policy bundles
Policy bundles are usually offered at a lower price since you’ll be purchasing multiple policies at a time. Insurers offer a bulk rate at a discounted price for each policy if you consolidate your insurance to them. This means that you will get your homeowner’s, auto, health, and other policies from the same insurance company.
This is convenient since you only have to deal with one insurer. However, you have to ensure that they are trustworthy so you wouldn’t lose big time in the long run. Again, shop around and explore your options.
Maintain a good record
Another guaranteed way to evade excessive insurance premiums is by having a clean record. Be a responsible driver to prevent accidents. This way, when the insurance company looks at the history of your car, there’s nothing that they can use to charge you a higher fee.
Also, a good credit record will also help you out. It sends an excellent image to your insurance company that you’re in excellent financial standing and equipped to pay both the deductibles and premiums on time.