You can ensure you don’t spend a dime more than you should on premiums by learning how to get cheap auto insurance. There are a few ways of saving money on car insurance. Which of these discounts you can bag determines how much you pay for insuring your automobile. Most motorists should be able to qualify at least several of these discounts since a few of them have nothing to do with driving and easy to qualify. So, here is how to save on auto insurance.
- Avoid Tickets When You Can
Careless driving can cost you more than just traffic fines. If you want to know how much does insurance go up after a ticket, click the link. When you get a speeding or reckless driving ticket all may not be lost yet if this is your first ticket. Depending on where you live you may be offered to either attend a driving school or accept the points on your license. If this happens consider yourself lucky and take the course to avoid getting a ticket and points on your license. This is our first tip on how to save on car insurance because a ticket can affect your premium for at least three years.
- Look for Ways to Avoid Accidents
When you start getting a few accidents and near misses you should seriously consider taking an advanced driving course. This will show your insurer that you are serious about improving your driving and may qualify you for discounts. Do you know how much does insurance go up after accident? Read the post to find out.
Another thing you could do to economize on auto insurance is to find out if there are any driving courses offered by your current insurer. Usually, these courses aren’t difficult to take and are online. If you can complete it successfully you can get around 10% discount. On the other hand, your insurance may go up if you fail.
Also, advanced driving courses can be a great tool to get the most affordable car insurance for teenage drivers. There aren’t many discounts you can claim when you are a teen driver and your premium is probably very high. So, you can save hundreds of dollars by completing one of these courses and improve your driving that reduces the chances of having accidents.
- Compare Insurance Costs before You Buy a Vehicle
You can keep your premium low for years to come by buying an auto with low insurance rating. The type of vehicle you drive affects insurance premiums more than you may expect. Premiums are based partly on value of insured automobiles, cost of repairs, and its safety and security records. You get discounts with automobiles that reduce the risks of injuries or theft.
This point cannot be highlighted enough when you are buying the first car for a teenage driver. It is one of the best ways to save on car insurance no matter how old or experienced is the listed drivers. But choosing a cheap to insure automobile is definitely one of the most important decisions you make if you want cheap insurance for young drivers.
- Switch Cars to Save Money on Car Insurance
It is highlighted above just how important it is to drive a car that is cheap to insure. You may have missed the boat on your last vehicle purchase but it may not be too late to change your automobile, especially when you need to add a young or new driver to your policy. You may even be forced to switch your auto for a more modest one if you have a sports car. Your current insurer would certainly increase your premium a lot as soon as they know you have a teenage driver in your house and you drive a sports car. They may even refuse to insure you with certain automobiles.
- Good Credit Is Essential to Save on Auto Insurance
Your credit score may be as important as your driving records with some insurers. It is not easy to find auto insurance companies that don’t check credit in most states, except California, Massachusetts and Hawaii where insurers aren’t allowed to check for credit. Insurance credit rating is widely used and can affect your premium as much as 20%.
There are a few simple things you could do to improve your credit score and make sure that it remains good. One of the first things is to make sure you pay your bills in time. You can also avoid applying for too many credit cards and loans and maxing out your credit cards.
- Look for Low Mileage Discounts
You may be driving only few miles for many reasons like retirement, working from home or commuting by public transport. If your automobile is mostly sitting at home you can get cheaper auto insurance for low mileage drivers. You can save a lot of money if you are driving less than 3,000, 7,500 or even 10,000 miles a year depending on companies. Alternatively, check pay per mile insurance offered by few companies. Again, pay per mile policies are good for drivers who drive less than 10,000 miles pa.
Savings with pay as you go car insurance is a bit different than mileage based discounts because companies don’t only look at mileage but check how good a driver you are before applying the discounts. If you are a good driver with sensible driving patterns you may be able to save on cost of insuring your car even though you drive more than 10,000 miles a year.
Buying more than one type of policy from the same insurance company usually lowers your overall insurance premiums by about 10 – 15%. Most common bundle is home and auto insurance together but other combinations are offered too. Save some money by bundling since you are buying them anyway.
- Increase the Deductible to Save on Car Insurance
Increasing the deductible can reduce the cost of Collision and Comprehensive Coverage. Usually, you should expect to economize around couple of hundred dollars by increasing the deductible from $500 to $1000 with most insurers and in most states. If you are confident about your driving or not driving much anyway this may be a good example to how to reduce auto insurance when you are a good driver.
- Don’t Make Small Claims
Many people have the wrong idea about claims especially small ones. Yes, it is your right to make a claim when you suffer an insured loss. But each claim raises alarms and this can be a serious problem when you have several claims in the last three years. Also, many policyholders don’t calculate the deductible when they are making a claim. For example, if your deductible is $500 and you are making a claim for a $900 loss you are only going to get $400 from your insurer and they may raise your renewal premium more than $400 because you made this small claim.
- Buy Liability Only Coverage for Older Cars
After a certain age the value of your automobile drops to a level that insuring it may not be worth. Then, it may be wise to drop Collision and Comprehensive coverage and set aside the money you save for down payment on your next car. Collision and Comprehensive coverage together pays for damages to your vehicle and it may not be worth making repair claims if you take out deductible. When vehicles are near the end of their economic life it is best to start thinking about your next auto instead of getting it repaired. That is why liability only car insurance may make sense.
- Look for Group Discounts
Some companies like GEICO offer lower rates to drivers who participate in a group plan from their employers, through professional, business and alumni groups or from other associations. If you can fit into any of those groups you can save money on vehicle insurance. For example, GEICO offer savings to over 250 groups. AAA may be able to offer you membership discount on vehicle insurance as well.
- Settle in a Low Auto Insurance Zip Code
Today, insurers are sophisticated and allocate different rating for almost every zip code because risks of auto theft, traffic accidents and vandalism vary from one community to another. This is more so when you compare a small town to a large city where there are more traffic accidents and auto crimes. That is why city automobile insurance is more expensive. Further variables that goes into zoning for insurance purpose are weather conditions, auto repair costs and so on. You can quickly check how much your premium will differ between two locations you are considering moving into.
Also, the distance between your home and work is important since it is used to determine how many miles you will commute every year. So, living closer to work can help you save on auto insurance.
- Park off-street
Another thing you should look for is private parking especially in high insurance zip codes. When you leave your vehicle off the street and in a private parking the chances of something happening to it is lower and therefore insurers usually offer good discount for off-street parking.
- Look for Multi Vehicle Discounts
Another simple and effective way of saving on premiums is to insure more than one car with the same company. Quite a few insurers offer discounts even though different family members may own vehicles insured and separate policies may be needed, as long as they share the same address. This is a good way of ensuring all family members benefit from multi policy discounts. You can also look for multi-car insurance policies that save a lot of money when you insure all your vehicles under one policy.
If you are at the college and have taken your car you can check for the companies that offer special discounts for college students or for your college. You can also check for car insurance with student discounts and see if you qualify. If you are parent and your college student child is listed on your policy you can check for companies that will give you large discounts for a college student who is far away from home.
- Pay the Premium at Once
If you can afford to pay the premium at once you may be able to get further 5% saving on auto insurance depending on your insurer. Also, you avoid paying installment fee and interest for deferred payments because you are getting credit from insurer when you ask for premium installment.
- How to Cut Car Insurance Premium by Shopping
Comparison-shopping is arguably the easiest and most effective ways of economizing. Quotes for the same coverage can vary by hundreds of dollars among insurers. You should at least get several quotes once a year from varies types and sizes of companies. You can compare auto insurance quotes online quickly or ask your agent to do it for you if you are pressed for time.
There is really no other way of knowing how automobile insurance quotes will pan out. For example, an insurer may appear to be offering a few different discounts but it doesn’t mean that their quote is going to work out cheaper.
- Check your Policy for Unnecessary Add-ons
Buying vehicle insurance policies that come with all the bells and whistles may sound great but do you really need them? Don’t forget that every extra cover cost you money. For example, do you need towing coverage if you are already member of a roadside recovery service? Or do you need rental reimbursement cover if you have another vehicle you can use in case you need to live the insured vehicle in repair shop after accidents?
- Look for Special Discounts like Switch and Save
Most insurance companies offer special ways to get low rates. Look for latest discounts and special promotions online. You may even get 10% off your premium just for liking an insurance company on Facebook. These are easy discounts and one of the more common ones is switch and save that can get you about 5% cheaper premium for switching. If switching makes sense you may as well get the most out of it.
Arranging the right vehicle insurance coverage is important for your peace of mind and in case of future claims. If your current insurance premium is expensive it will naturally scare you off from looking for the best coverage. But knowing how to economize money on car insurance will help you get best coverage at great value. Remember that you are on the driver’s seat when it comes to getting the best cheap auto insurance coverage.