Car insurance is essential. It not only protects you when you are behind the wheel, but it also acts as a great liability cover too. However, everyone knows that car insurance has a significant cost. This also makes buying car insurance a difficult decision for many, especially those on a tight budget.
Cut Car Insurance Cost by
1 – Looking for multi-car discounts
Insurance companies have a higher cost for insuring a single-vehicle. In contrast, buying car insurance for multiple cars or drivers can bring down the premium rates remarkably. In addition, insurance companies are eager to serve new and existing customers, so they are likely to offer you a better rate for buying car insurance in bulk.
So, ask your insurance agent to check if you are eligible for multi-car discount. This kind of car insurance policy usually covers multiple drivers who are registered as living at the same address, or are directly related. In addition, two unrelated individuals can also avail this discount provided that they have joint ownership of the vehicle.
2 – Being a safe driver
This possibly will sound too simple, but it is one of the most critical factors that can eventually help you save significantly on car insurance costs. Being a safe driver is an excellent way to get safe driver discounts from your insurance provider, which may vary between 10% and 23%, depending on your driving history.
Many policy owners don’t realize that insurance companies assess allotting points to drivers depending on their driving record. Therefore, traffic violations, road rash incidents, etc., can add points to your plan, which eventually make your car insurance most costly. Hence, being a safe driver helps to bring down the cost of car insurance.
3 – Choosing to take a defensive driving course
At times, insurance companies offer discounts to policyholders if they choose to undergo an approved defensive driving course. Besides, drivers with high points on their license can effectively reduce insurance rates by successfully taking a defensive driving, accident prevention, and other similar driver-safety training.
It is vital to make sure that your particular policy provider offers discounts for choosing defensive driving courses before signing up for one.
4 – Doing a little research on insurance rates
Suppose you are a new policy buyer or looking to renew your existing car insurance policy but don’t want to pay the inflated premium rates. In that case, you should seriously consider looking for alternate insurance companies. This is an excellent way to learn the speed of car insurance policies by different insurance companies. Insurance experts also advise policyholders to do a rate research every year or so because there’s a high chance another insurance company is offering the same car insurance policy at a lower rate.
5 – Increasing the deductibles range
The deductible refers to the sum of money you are willing to pay before the insurance company has to step in, in case of an accident, theft, or any other type of damage to the vehicle. Deductibles and premiums are inversely proportional, meaning Insurance companies inherently charge a higher annual premium for car insurance policies with a low deductible range.
In contrast, the higher the deductible range is the cost of car insurance premiums gets lower. You can learn the exact effect of this by consulting with your policy agent.
You can cut back on the cost of car insurance with the above-mentioned tips. You can also lower the cost of car insurance by improving your credit rating, installing anti-theft devices in your vehicle, and switching to pay-as-you-go insurance plans.