Driving a car and maintaining it has the potential to cost a lot of money in the long run. Therefore, it may be beneficial to look at ways to cut costs where possible, such as on a mandatory expense like car insurance. Here are some practical steps that have the ability to lower car insurance rates:
Get a quote before you buy
Calling one or two insurance agents before you buy a new vehicle can provide an early indication of potential insurance costs. Insurance premiums can vary significantly for different makes, models, and ages of vehicles. If insurance for a particular vehicle is likely to be too expensive, it may be more practical to look elsewhere.
Review coverage on older vehicles
For the older car that is free of financing, it may be worth checking the collision-only insurance coverage. This is the type of protection that is required if the damage is directed at a third party vehicle. In many cases, this simple step can help make a useful saving on the cost of insurance.
Use only one insurance company
Try to use one insurance company for multiple policies, such as auto, home, travel, etc. One benefit of this is the ability to get a multi-line discount, which is typically in the order of 10-15% of the total annual premium.
There are many insurance policies that offer incentives for a lower premium. One of these incentives is a proven record of safe driving, which can include avoiding accidents and avoiding speeding. This has the potential to give an additional discount on the annual premium of around 5-7.5%. Also, avoiding any traffic violations for a period of 3 years; it is possible to obtain an additional deduction of costs.
Increase the deductible
Another simple step to control costs is to increase the deductible amount. It is the first amount paid by the policyholder at the time of the claim. By raising the deductible from $250 to $500, there is the potential to make a substantial difference. The deductible can even be increased to an amount like $1,000, which should go a long way in keeping your insurance premium in check. However, it’s wise to only increase your deductible to an amount that’s affordable and easy to pay for in the event you need to make an insurance claim.