There are many ways of lowering premiums but a few of them offer the largest vehicle insurance discounts and make a real difference. Essentially, motorists need to show that they are low-risk, trying their best to reduce accidents and damages and they are unlikely to make claims in the future to qualify for the lowest rates. Also, showing loyalty, ability to manage your finances, buying more policies from one provider may not have much to do with driving but they can still help policyholders save money on auto insurance.
Vehicle owners should remember that companies know nothing about them at the time of applying for a quote. That is why they should fill the proposal forms attentively to offer as much helpful information as possible. It is their chance to ensure they don’t miss out on discounts because they didn’t appreciate why the question was asked. Every question helps automobile insurers to assess the risks and determine what savings they offer. So, let’s look at the possible ways to save on vehicle insurance so that we are ready to look for them when getting quotes.
1. Clean Driving Records
Companies look at Motor Vehicle Records of applicants and can see traffic violation tickets and accidents they are involved in. An accident and traffic conviction free record often means 20 – 30% discount on car insurance from nearly all providers and in all states. These are clear indications of drivers’ skills, attentiveness and ability to stay out of trouble. That is why companies see them as low-risk hence one of the most common and largest savings. The trouble is that one ticket can affect rates for 3 years and one DUI can cause you trouble for 7 – 10 years depending on where you live. They have immediate and long-term effects, as they are clear indicators of risk taking behaviours.
2. Choose the Right Car
Companies look at make, model, body type, engine size, value and safety features of vehicles when they calculate premiums. Cars, which aren’t easy to steal, don’t cause serious injuries to their occupants due to better safety features, don’t take off quickly and cannot drive too fast, are cheaper to repair and aren’t expensive to replace when totalled, qualify owners for large insurance savings. This is even truer if you have checkered history or are a youngster.
3. Maximize Customer Loyalty Discounts
They come in many forms and often require buying more policies from the same company. Bundling home and auto policies can result in 5 – 10% discounts but motorists can save around 15% when they arrange multi-car insurance policies that allow several vehicles under one policy. Also, some companies offer loyalty discounts but many companies offer savings and lower rates to convince motorists to switch. So, don’t count on loyalty discounts but shop around to see if you are getting a good deal at the end.
4. Choose the Right Coverage
Essentially, rates are applied to the level of coverage to arrive at the final price. So, check your coverage carefully and see what you need exactly and which options don’t apply or help you any more. If you paid off your auto loan and your automobile is getting older, you may be able to reduce coverage and save money on auto insurance. A liability only policy would be on average only one third of a full coverage. So, it is worth thinking about it when you can cope with paying damages to your own car out of pocket.
5. Consider Higher Deductibles
Deductibles are like adjustment valves. When you turn them up you can save money on car insurance. The trade off is that you pay more out of pocket if you have claims but it may be worth accepting the trade off if you can reduce your premium sufficiently enough and often you can. It is worth getting a few quotes with different levels of deductibles and see if the difference is worth agreeing to higher deductibles.
6. Keep a Good Credit Score
Nearly every company looks at credit scores and it is allowed in most states. People can save as much as 20% on car insurance for having a great credit score with many companies that makes it worth checking your own credit score and figuring out what you need to do to improve it.
7. Keep Continuous Coverage
This one is actually relatively easy and effective. Many companies offer savings on automobile insurance when they see a long unbroken coverage. However, many providers offer around 8% discounts even after only six months of continuous insurance. So, you may not get a great quote when you buy a policy for the first time but starting from the next renewal you could shop for the largest continuous coverage discount.
8. Pay the Premium in Full
Another simple and very effective way of saving money on car insurance is to pay the premium in full for around 10% lower premiums. Many companies offer this discount. Besides, policyholders can avoid the set up and service fees for paying in installment too.
9. Consider Usage-Based Programs
There are many telematic based programs that can give people a chance to save on auto insurance. This works well when motorists cannot qualify for other discounts because of a recent claim, being young or buying a policy for the first time. A little telematic device is fitted on the car to monitor driving habits and the premium is adjusted according to the desirability of information received. Of course, this can backfire if you are a terrible driver.
10. Shop Around
Getting a few quotes and comparing them would allow people to find the best prices. This is one of the easiest ways of saving money on vehicle insurance, requires no qualifications and everyone can take advantage of it. Some motorists with average driving records can find cheaper quotes than a very solid driver with years of no claim and traffic ticket. They achieve this by shopping around rather than sticking to one company. Always have a few quotes and compare for the lowest rates.