Are you looking to reduce your vehicle insurance premiums? If so, one thing you need to remember right from the start is that you can find better prices by simply shopping around and getting quotations from a few insurers. The price of auto insurance can vary greatly from company to company, which is why it is important to compare quotes.
Even if you are content with your current auto insurance provider, you should still consider looking at other carriers. It is best for you to compare various providers online because this will help you save a lot of time and money. You will be able to compare prices without even leaving your home. It is easy to switch vehicle insurance firms especially when your current policy is due for renewal.
In addition to comparing quotes online, there are several other things that you can do to save money on car insurance. Below are some simple tips for reducing your premium:
Get A Higher Deductible
Your deductible is the amount that you will have to pay before your insurance pays for anything. You can save a lot of money on your premium by raising your deductible. Many insurance companies require you to have a minimum deductible of at least $500. If you raise your deductible to $1,000, then you may be able to save 15 to 30 percent on your premium.
However, you want to make sure that you have enough money in your savings account to cover you if you were to get into an accident. That is why you should deposit money into your savings account every week. If you have no accident for a while you get to keep this money.
You could save money on vehicle insurance by driving less. Many auto insurers offer discounts to low-mileage drivers. If you live in a city with public transit, then you should consider taking public transportation a couple of times per week. You may also want to consider carpooling with some of your friends and coworkers.
Ask About Discounts
You will be surprised to find out how many car insurance discounts you may be able to get. For example, you may be able to get a discount if you are over the age of 25. You may also be able to get a discount if you take a defensive driving course. Furthermore, if you are the parent of a teenage driver, then you may still be able to get a discount.
Most carriers offer discounts to students who successfully complete a driver’s education course. You may also be able to get a discount if your child has good grades in school.
Do Not Get Unnecessary Coverage
More coverage is not necessarily better. You may just end up spending a lot of money unnecessarily if you get extra coverage. For example, if you have an older vehicle, then you do not really need comprehensive insurance. In many cases, the cost of the insurance and the deductible amount is worth more than the car.
Clean Up Your Credit
Many people do not know that their credit score could affect the amount of money that they spend on automobile insurance. If your credit score is not as high as it should be, then could end up spending a lot more money insuring your cars. That is why it is important to check your credit. When you look at your credit report, you should verify that all of the information on there is accurate. False information could lower your credit score by several points. Erroneous information should be reported as soon as possible.
Paying bills on time is one of the most important things that you can do to keep your credit looking good. Thirty-five percent of your credit score is determined by your payment history. You should also try to pay down some of your debts. Thirty percent of your credit score is determined by your total debt.
Be A Cautious Driver
You probably are already aware of the fact that your insurance rates could skyrocket if you got into one accident. On the other hand, being a cautious driver could help you get lower rates. Having no claim history is one of sure way of ensuring that you will get cheaper auto insurance from most providers. They just love good drivers.
Keep in mind that seemingly minor things, such as traffic tickets, could also cause your rates to increase. It really does pay to be a cautious driver.
Pay Your Car Insurance Premium Annually
Most firms give you the option of paying your premiums annually, monthly or every six months. You should consider paying your premium every year if you can afford it. You may be able to save three to five percent on your car insurance by paying it once every year or every six months. Companies prefer to get their money in advance, which is why they offer discounts.
Insure Multiple Cars On The Same Policy
If you have more than one car, then you should consider insuring them all on the same policy. Most car insurers offer discounts to people who insure multiple cars under the same policy. In fact, some companies will allow you to insurance up to four cars under the same policy.