A lot of people complain about the cost of their car insurance. It’s almost not amazing given the fact that a mere policy will cost some people hundreds of dollars annually. Depending on your credit score, driving record, age among other factors, the premium that you pay annually can be substantial. The question therefore is, how do I reduce on my premiums and save part of my hard-earned cash?
Comparison Shop around – this should be your first major step as you investigate all alternatives at your disposal, especially when your current policy is almost expiring and you discover that your premium has increased. You can be very surprised to know that car insurance for the same coverage on the same type of car can greatly vary between different companies.
Look at your deductible – for a lot of people, increasing the deductible can be a great way to reduce the cost of their premiums. By increasing from $250-$500, you can reduce your premium costs by up to 10%. However, ensure you’re able and capable of footing the bill if the time comes.
Check your credit report regularly – one’s credit history is a major determinant for many car insurance companies today. Ensure you pay your bills on time and keep a good history by looking at typos and seeking corrections with relevant authorities before you start applying for auto insurance.
Seek low-mileage discount – if you opt to drive less than a set number of miles per year, you are likely to qualify for low-mileage discount. Opt to commute to work, or use public means than driving daily after you have confirmed that your insurer extends a low-mileage discount
Avoid using your vehicle for business – job related driving basically subjects one to higher premiums compared to pleasure driving, hence can be in your best interest to cease from using your car for business purposes.
maintain a clean driving record for a specified period of time, normally 3 years, and get a price break.
Opt for a low-profile car – auto insurance companies rate cars on a risk scale to determine the premium rates. high performance, flashy cars are rated as high risk cars as they tend to be mostly targeted by vandals and thieves and since according to statistics, car owners of such vehicles tend to be reckless drivers.
Change locations – living in rural areas with less traffic congestion and little crime will generally reduce your premium compared to living in urban areas.
Park in an enclosed area – cars parked on the streets are highly likely to be vandalized, stolen, or hit by other vehicles compared to those parked in garages. Reason enough to use a garage and reduce your premiums.
Install safety devices and security features – if your car has anti-theft devices, anti-lock brakes, airbags, automatic seatbelts etc, you can be entitled to discounts which will without a doubt reduce your premium costs.
Consolidate your policies – if you have other vehicles, property, etc that you want insured, you may seek to purchase from a single insurer to qualify for multi-policy discounts.