Cutting Your Auto Coverage Costs
Having sufficient car insurance coverage is important, but no one should have to pay an exorbitant amount to keep a policy current. Here are some tips to help you reduce your auto coverage costs without sacrificing coverage you need.
Shop around. You should never settle for the first offer you receive without exploring other options. Compare specialized insurance carriers to large companies and compare their rates against each other. Additionally, don’t be afraid to ask for discounts. Most insurers offer discounts for various reasons, including good driving records and continuous coverage.
Review your coverage. Many times, people are paying for coverage they don’t need. Take a look at your policy and identify areas where you could cut back without compromising coverage that may be important for you. For example, if you don’t use your car to drive to work, you may not need full coverage.
Pick the right car. When you buy a new car, make sure you do your research before making a purchase. Some cars are more expensive to insure than others. Research the make and model of your prospective car to assess how much it will cost you to insure.
Increase your deductible. One of the easiest ways to reduce your auto coverage costs is to increase your deductible. By increasing your deductible, the insurance company will charge you a lower premium. Just be sure to only increase your deductible to an amount you can afford to pay out of pocket in the event of an accident.
Drop coverage for older cars. If you have an older car, chances are you may not need to pay for full coverage. And if your car is worth less than 10 times its insurance premium, it may be time to drop the coverage altogether.
Look for modifications. Some insurers may give you lower rates if you make modifications to your car and/or lifestyle that can reduce the risk of having an accident. For example, if you added an alarm, an immobilizer, or a tracking device to your car, you may qualify for a discount.
Be prepared. Finally, it pays to be prepared. Before you shop around for car insurance, make sure you are well versed in the applicable coverage laws of your state. That way, you can make sure you’re not paying for more coverage than you need.
One of the next areas to consider is the effect of credit scores on your policy. Many auto insurance companies use credit-based insurance scores to factor in eligibility and rate calculations. A higher credit score may be associated with lower auto insurance premiums. Therefore, you can work on boosting your credit score or seek out insurers that don’t use credit-based scoring.
You can also consider opt-in services which can provide innovations in safety and protection that often result in reduced premiums and usage-based insurance programs. Many usage-based insurance programs track your driving through a mobile app or a small device installed in your car. It can then track your miles drives and evaluate your driving techniques to offer you personalized pricing.
In addition, you can look into adding a named driver to your policy. Adding a named driver to the policy could help reduce your premium. Adding a more experienced driver to your policy could be beneficial, particularly if that person has a good driving record and no incidents.
You may also want to consider shopping around for discounts. Some insurance companies offer discounts for things like alumni association memberships, loyalty, good grades, or military services. Furthermore, there are many other hidden discounts you can have access to so make sure to ask your agent or insurer about discounts for which you may eligible.
If you own multiple cars, a multi-car discount could also be beneficial. Multi-car insurance offers discounts for having multiple cars on a single policy. When adding a second car to your policy, the insurer perceives you as less of a risk because multiple cars means youre less likely to drive any of them frequently.
Finally, group insurance policies can also be beneficial and result in savings. Group auto insurance discounts typically come from employers that offer group auto insurance programs and associations and clubs that you may be part of.
In conclusion, there are a number of different ways to save on auto coverage costs. If you take the time to consider all the options, you could potentially shave off some of your insurance costs while still retaining adequate coverage for your needs.