There are many ways for you to qualify for discounts but not all of them are powerful enough to make a real difference. Sometimes, you don’t need to get everything right to do well. All you need to do is to score high on basic points and that is exactly what you do if you can bag most of them below. So, what are the most effective ways to save on auto insurance?
Remember that companies know nothing about you at the time you apply for a quote. You need to make sure that they know everything they need to know about you to offer the lowest rates. That is why you should fill the proposal forms attentively. It is your chance to ensure that you make a good case for why you deserve to be rewarded with the best quote. So, let’s get down to business and learn how to qualify for the most effective ones.
1. Drivers with No Claim Save the most Money on Vehicle Insurance
It is a well-known fact that the best prices are offered for long no claim history. You can probably see premiums reduced by 50% with some vehicle insurers once you reach five years without any trouble and traffic violation conviction since you get both no claim and good driver discounts. They offer rate reductions for every year that passes without any trouble. The largest of these may be received once you complete the first accident and claim free year. Recent history is more important for underwriters than a few years back. Large number of them only looks back last 3 years.
2. Being a Good Driver Saves Money on Automobile Insurance
Traffic violation tickets get you in trouble with carriers. They see them and points deducted on records and apply a surcharge, as well as taking away preferred status. The trouble is that one ticket can affect rates for 3 years and one DUI can cause you trouble for 5 – 7 years depending on where you live. They have immediate and long-term effects, as they are clear indicators of applicants’ skills behind the steering wheels.
3. Safer Cars Protect Better and Cost Less Premiums
Purchasing an automobile that is not likely to cause an accident would be appreciated and rewarded with lower prices. There are vehicles which are known to cause road accidents, heavy injuries and large damages. Avoiding such unfavorable vehicles and buying safer ones instead will help you economize. This is even truer if you have checkered history or are a youngster.
If you cannot save enough because you are neither a good driver nor claim free you can at least make sure that you have a safe car, which results in large a discount on its own.
4. Safer Neighborhood Means Cheap Car Insurance
Where you reside is yet another consideration for better prices. Areas known for high traffic accidents, vandalism and auto theft will result in higher rates. Paying a little attention to possible charges based on the zip code can help you locate to a better area. Also, if they do not like the location it is probably a good sign for you to stay away from there, if you can afford it.
5. Choose the Right Policy and Pay Less Automobile Insurance
Another solution is not going to town with it. People who are in the industry know this small secret, which is buying just the coverage you need. What you do is to insure against possible losses you cannot shoulder on your own and take a view on the rest depending on the costs of adding them on. Remember, cancelling a cover that costs only few dollars per month may not be a smart thing to do if you have no money for the repairs. Purchase the right amount, nothing more or less.
6. Take More Responsibility with Higher Deductibles
Increasing them can be a good solution because they will see that you are willing to take more risk and avoid small claims that may arise. Increasing deductibles will generally result in some better rates. However, you should not overdo it by setting it too high. It is too high if you don’t have enough money in the bank to pay twice deductibles in a year.
7. Good Credit is an Effective Way of Getting Cheaper Quotes
Many motorists may not be aware of it but credit score is a key factor with many of them. There are many reasons for it. One of them is that they believe policyholders with tight budgets make more claims. Also, they don’t want customers who will have payment issues in the future. They will not be happy losing customers with poor credit score to competitors. But they don’t believe they need to break their back to win over a potentially troublesome motorist. That is why applicants with good score can get about 10 – 20% better rates while poor credit history results in surcharges.
Bundling is one of the easiest ways of getting both policies at more affordable prices since you will need to insure both your home and car. You probably have more opportunities if you can bundle different policies but these two are the most commonly bundled ones.
9. Shopping Is the Easiest Way to Save Money on car Insurance
Some motorists with average driving records can find cheaper quotes than a very solid one with years of no claim and traffic ticket. They achieve this by shopping around rather than sticking to one company as if there is an unbreakable bond between them. Always have a few quotes and compare them to evaluate the options better. Being carefree on this area could be costly.
10. Get Student Discounts to Reduce the Premium
Sadly, there are not many ideas for young drivers. You don’t have history and you are inexperienced. Your credit history cannot help you too since you may have none or a poor one. But you can still find affordable teenage auto insurance with student discounts. So, look for a student friendly company and qualify for it. If you already have good grades don’t let it go to waste.