Auto insurance can save you a great deal of money on car repairs and replacement. But it’s also an additional expense which you have to pay monthly or yearly. And policyholders want nothing more than to save on premiums.
6 Proven Ways To Save On Auto Insurance
If you’re looking to cut costs, you’ve come to the right place. Below is a list of tried and tested techniques to save on auto insurance!
Tip #1 – Maintain good credit
Studies show that people with sound credit make fewer claims than those with poor credit. Auto insurance providers get to save money this way. And you can take advantage of your good credit standing by asking for a lower premium.
Before applying for car insurance, be sure to review your credit record so you can verify its accuracy.
Tip # 2 – Check for group insurance
Some providers offer lower premiums through select groups. Talk to your employer or associations and organizations you’re connected with. See if your groups are affiliated with insurance companies and whether they qualify for group plans.
As a final step, see how much less you’re going to pay if you opt for a group plan versus regular-priced auto insurance, and if this would affect your coverage at all. Group insurance that provides less coverage may not be worth it.
Tip #3 – Compare providers in your city
List down auto insurance companies in your city. Request quotes from as many providers as possible and compare their offers. Ask friends, family, and colleagues about their experiences. Don’t forget to check online for reviews involving customer service, claims process, and other factors that are important to you.
Cheap car insurance isn’t always a good option and will likely give you poor coverage. The best find is auto insurance that gives value for your money.
Tip #4 – Bundle your insurance policies
If you have other types of insurance (i.e. health, homeowners) then you may not need to look further. Ask your current provider if they have auto insurance and if they offer discounts for multi-policy holders.
But don’t make a final decision just yet. Compare bundled prices from your provider with buying a separate car insurance policy from another company.
Tip #5 – Ask your provider for discounts
You’ll be surprised to know there are many providers who hand out discounts to policyholders. The catch? You have to qualify for them.
Some examples of discounts offered by auto insurance providers include:
- New car owners
- Loyal customers
- Switching from another provider
- Low car usage or mileage
- Good students and senior drivers
- Safe and accident-free drivers
- Opting for auto-payment
- Vehicles equipped with safety features
- Green or hybrid vehicles
- Drivers who trained
- Drivers with defensive driver courses
Tip #6 – Increase your deductibles
Your last option to save on auto insurance is to raise your deductibles. It’s one of the best ways to reduce your premiums by a huge margin. Although you do have to be careful since this would mean paying more out-of-pocket when filing for a claim.