How To Save Money On Auto Insurance – Getting auto insurance is no small feat, it can turn out to be one of the biggest budget items you can have, so you need to know how to save money on auto insurance.
So many factors come into play in determining the cost of auto insurance. There are factors like where you live, how much you drive, the purpose of your drive (work or personal), your driving history, your credit history, what car you drive, etc.
Is having an Auto necessary?
Auto insurance is a necessity, and you can’t afford to go without one, because without one, you can be fined and even lose your driver’s license. You will also be saddled with so much cost if you have an accident.
How To Save Money On Auto Insurance
If you are ready and want to start saving money on your auto insurance, let’s guide you through it.
Shop Around /Compare Companies
No two insurance companies are the same. They all come with different algorithms for calculating their insurance premiums. This is why it is very important that you look around, and compare the rates from dozens of insurance companies before you decide on the one that best fits you.
If you already have an auto insurance policy, then you try reviewing your auto insurance, to make sure that you are not overpaying for your protection. You also have the option of switching insurance carriers to save some more if your preferences have changed.
Bundle Your Insurance
Most insurers, give a discount if you purchase two or more types of insurance from them, like homeowners and auto or have more than one vehicle insured. Some companies also are known to offer a price break to longtime customers.
Since there is no guarantee, it is best you ask the company how much you would save by having all of the policies at one single company. Note also, that bundling all of your policies at one company can save you 10% or more on all of your coverage.
Go With Defensive Driving
You can also save money on your auto insurance by taking a defensive driving class. This is because insurance providers, will give you a monthly discount if you complete and show proof of a defensive driving course. Through this medium, you can save $100 every year or more.
Apart from the monetary discount you stand to gain, the defensive driving classes could help you avoid an accident in the future, which will save you even more money. This is because, the class teaches drivers how to react in certain high-risk situations which could end up in a collision and major damage to your car or yourself.
Maintain a Good Credit History
The benefits of having a healthy credit history, cannot be overemphasized, it comes in handy for almost anything you want to apply for, and lowering your insurance cost is not an exception.
To make sure your credit score is in good standing, ensure you check your credit record on a regular basis, to be sure all information are up to date.
Raise Your Deductible
Choose a higher deductible on your car insurance, to significantly lower your premium costs. But note also, that you have to set aside enough money to pay the higher deductible if you have a claim.
Reduce Optional Insurance on Your Older Car
If an older car, that is worth less than 10 times the insurance premium, has a collision, the comprehensive coverage, may not be cost effective. To find out, check the value of your car for free on websites like Kelley Blue Book, National Association of Auto Dealers (NADA), as well as on TrueCar.
Take it Easy
Getting a speeding ticket will not help you in any way, rather it could raise your insurance premiums for several years, and the more speeding tickets you get, the more risk you pose to an insurance company. On the other hand, driver’s who constantly speed are more prone to accidents.
Getting auto insurance does not have to burn a hole in your pocket. You can still get affordable coverage without compromising on the quality of your coverage in several ways.