When it comes to buying car insurance, do you dither? Is it because of the high rates quoted by various car insurance companies? You are not alone. Many US drivers forgo car insurance even though 49 of the 50 have made car insurance compulsory.
One of the reasons that car drivers reject the notion of car insurance is that the cost of living and benefits have gradually risen at an annual rate of between 10% and 12% instead of the federal minimum wage. No matter which car insurance company you choose, car insurance will burn a massive hole in your wallet.
Since you would not want to fall foul, it is better to get auto insurance. Before deciding the insurance rates, it is better to compare car insurance quotes. You can get free car insurance quotes if you go online. These car insurance quotes will give you an idea of what cheap car insurance options are available to you.
We have listed a few methods that will help you in getting cheap car insurance for yourself. Some of these methods are tried and tested, while some might be new for you.
Improve Your Credit Score
If you are shocked to learn that auto insurance companies use credit scores to determine your premium, don’t be. Many car insurance companies use credit-based insurance ratings.
Be a safe driver
Speed thrills but also kills. Speeding through the highway and dodging through traffic can give you the thrills on TV or make you a viral star. In other words, drive cautiously. This should go without saying, but it bears repeating in this day and age of growing in-car disturbances.
The more cautious you are, the fewer injuries or moving violations you will be likely to prevent, which will increase your insurance premiums. For those unaware, a driver has usually assessed points for moving violations, and more points may result in higher insurance premiums (all else being equal).
The driving record of a driver is an essential factor in deciding auto insurance rates. A driver with a history of injuries would cost the insurance company a lot of money. Regardless of whether that is valid, be mindful that your credit rating will be used to measure insurance premiums, and do whatever you can to keep it high.
Shop around
It’s probably a good idea to get quotes from other companies every year or two, just if there’s a cheaper rate out there.
Remember that cheap doesn’t always imply good, and going with the cheapest company isn’t always the best option.
Check the financial strength of the company that you are applying to. Try using a platform that rates insurance firms’ financial strength to conduct a background check on a specific insurer. Your insurance company’s financial strength is significant, but so is what your policy covers, so make sure you understand it.
Enroll in a Defensive Driving Course
Many scoff at the idea of a defensive driving course. But trust us. It will go a long way in reducing your car insurance premium. Auto insurance companies provide a discount to those who complete an accredited defensive driving course. If you enroll in a defensive driving course, you will be able to reduce the number of points on your license that would have accumulated due to driving violations.
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But before you dive into the course, consult with your agent or your car insurance company about this discount. The time and money spent on the course must result in significant insurance savings.
It is also essential that the driver enrolls in an approved course.
Every state has its own rules about accredited defensive driving courses.
Mind the car you drive
Swanky cars can improve your standing in your social circle. It can also bring smiles to the faces of your car insurance company. A top-of-the-line vehicle can be more costly than insuring a small (but safe) lower-cost commuter car.
Before making a purchase, find out the exact rates for insuring the various vehicles you’re considering.
Increase your deductibles
In the case of an accident or other forms of vehicle damage. Deductibles usually vary from $250 to $1000, depending on the program.
The catch is that, in general, the higher the annual premium, the lower the deductible. In contrast, the lower the premium, the higher the deductible. It may reduce your annual premium by many percentage points and put money back in your wallet, or it may have no impact at all. Raising the deductible could be a rational move if you are hesitant to file minor claims to avoid the possibility of raising your premium.
Do you need extra coverage?
Chopping off specific coverage to reduce your car insurance premium is a tricky and risky matter. If you are driving an old car that is on its last legs, it will make sense to drop collision or comprehensive coverage (depending on the cost, your driving record, and other factors).
You might not need all of the policy’s bells and whistles, such as roadside assistance and car rental coverage. Make sure to do a thorough check before you sign on the dotted lines.
Anti-Theft software discounts
Individuals who install anti-theft systems will be able to reduce their annual premiums. Your car insurance provider will tell you which devices, when installed, will help you save money on your premiums.
Extra discounts
Always speak to your agent before you take any steps to slash your car insurance premium. Your agent will have a better idea of what needs to be done to reduce your car insurance premium. You might never know what kind of discount pricing is available for your specific situation.
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Some of the unique discounts that your agent can guide you to are:
- Discount on premium if you use only e-bills
- Discount on premium if you pay the annual premium or six-month premium in one shot.
- Discount on premium if you have an active membership of specified organizations
It is important to remember that there may be others in addition to the cost savings mentioned in this article. Don’t be fooled by a long list of potential savings. Compare both discounted and standard insurance premiums from various insurers.
