Everyone – irrespective of their financial state and stage – likes to save money. Especially when it comes to auto or car insurance, many individuals find themselves getting bothered by the multiple requirements their state has for car insurance and the added and increasing insurance bills that they have to incur. Such individuals often look for car insurance quotes online that cover their state’s requirements, have good customer service and provide adequate coverage altogether. Listed below are a few ways how individuals can save money on car insurance while getting the best of both worlds:
Pay attention to car insurance BEFORE you purchase a car
Many individuals tend to overlook the fact that the type of car they purchase is likely to drive up their insurance costs. Car insurance premiums vary in accordance with a vehicle’s characteristics, its price, its repair costs, its history and its safety record. Hence, before purchasing a car, individuals should take into account its premium and then make a final decision accordingly.
Compare different car insurance policies
Since rates for car insurance providers vary a lot, it is essential that you do a comparison before choosing a car insurance policy. It is a generally accepted rule that an individual looking for an insurance policy should at least compare three policies before making a choice. If you are however looking to save up, it is recommended that you look for and compare at least 7 car insurance policies and select the best one. A good source of information would be your state’s department of insurance that has updated data about the rates, ratings and ratios of various insurance providers in your state.
Combine insurance policies with your carrier
Certain insurance providers offer discounts when individuals draw out multiple policies. For instance, an individual could receive a discount from their carrier if they purchase a car insurance policy in addition to an existing home insurance policy. Individuals could also avail a discount if they get all the vehicles in their household or family insured by the same carrier. Either way, these discounts add up to money saved that can be used elsewhere.
Try to increase your deductible
While increasing your deductible may mean that you’d end up paying a hundred or few dollars more in case you meet an accident, it also means that you would be saving anywhere between 20-40% in comprehensive coverage costs. However, it is also advised that the money you end up saving by increasing your deductible should be set aside to ensure that you can afford an even higher deductible in case you need to settle or make a claim.
Drive less and drive safe
While this goes without saying, individuals tend to save up on their car insurance premiums by driving safely and by driving less. This is because if the opposite were followed, individuals would be more prone to accidents which would end up raising their premium even more. Additionally, people can avail low mileage discounts by driving their car less and taking alternative modes of transportation where possible. Also, people with clean and accident-free driving records can also save coverage costs and lower their insurance premiums.
While car insurance may seem like an insignificant cost, it can add up on an annual basis and tend to be much more than we can comprehend. However, individuals can save up on car insurance policies by a number of ways and methods as detailed above. At the end of the day, car insurance is extremely important as it serves as a cushion in case of an unfortunate incident, and hence individuals should ensure that their car insurance policies are updated and in-check on a regular basis.
