With the rising cost of cars, it is also inevitable for car insurance to increase in rates along with it. If you’re not careful enough, you might end up paying a premium that’s too hefty for your own good. While insurance cost will not go down anytime soon, the good news is that there are several ways to lower your monthly premiums. Below are some of the things you can do to give your wallet some breathing room:
Buy a low maintenance car
If you haven’t bought your car yet and you happen to research on car insurance now, take this advice. Opt for a low maintenance or low profile car. Don’t buy vehicles that are expensive to repair because they also require a more expensive insurance. Also steer clear from cars that are known to be most stolen or those options with a less than stellar safety record.
If you already have a car and you’re in the market for car insurance, take your time to shop around. If this is your first time, you’d be amazed at the diversity of policies available in the market. If you’re renewing your insurance but the premium has gone up significantly, hold it off. Consider shopping around and try to get quotes from several providers before settling for your final choice.
Opt for Multiple Car Insurance
If you own several cars or if the family has several drivers then might as well insure multiple cars or drivers. Because insurance companies want you, they often offer bulk rates for multiple cars. In fact, some companies are willing to offer more discounts and better deals if you can bring in more business. The secret is to ask your agent if you have one or ask your provider directly if you’re eligible for a better deal if you’re insuring multiple cars.
Look for Discounts
Did you know that your monthly premium can increase by 67% if you have a teen driver included in your family policy? That’s because teens have a higher percentage of getting into an accident. To lower the cost of your insurance, you can always ask for discounts for teens. Don’t get a separate insurance for your teens and make sure to have your teen enroll in a drivers’ education course to avail of discounts.
Enroll in a defensive driving course
Don’t stop with asking your teen to enroll in a driver’s ed course. For yourself, you should take a defensive driving course to help lower the cost of insurance. Those who completed the course generally enjoy discounts. But just to make sure, ask agent or insurance provider first before enrolling in a class.
Raise your deductibles
When buying insurance, there is a thing called deductible. You can choose the amount of money you have to fork over before insurance kicks in. By raising your deductibles, you essentially lower the premium. If you raised it right, you may be able to enjoy a significantly lower premium by a few percentages and you can add the extra money to your savings or emergency fund.
If you’re driving older cars, it might be wise to drop some coverage like collision or comprehensive coverage off your policy. Older cars when involved in a collision or accident do not really need the coverage since the insurance company will likely total the car instead. Paying a collision coverage that may cost you xxxxx per year doesn’t really make sense if the value of the car is only xxxxxxxxxxxx.
Aim for a good credit score
What’s another way to lower your insurance cost? Aim to improve or maintain a good credit rating. People with good credit scores in general enjoy lower premiums because insurance companies actually value your business more when you have an excellent history as a borrower. For providers, good credit means that you’ll be a more careful driver which means less costs and risks for them.
Don’t be afraid to ask questions
There are many more ways you can try to lower your car insurance costs. The trick is to do your homework first and foremost then ask your agent for more recommendations. If you badly want the extra savings, don’t hesitate to seek out for discounts. Insurance companies often have promotions and discount pricing to lure customers. All you need to do now is ask so you’ll know which cost-cutting ways apply for your circumstance.