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 get the basic points right and that is exactly what you do if you can bag most of the savings 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 give their lowest rates. That is why you should fill the quote forms attentively. It is your chance to ensure that you make a good case for why you deserve to get the best quotes. So, let’s get down to business and learn how to economize on car insurance by qualifying for the most effective discounts.
1. Drivers with No Claim Save the most Money on Car Insurance
One of the most well-known and largest discounts are offered for long no claim history. You can probably see your premium reduced by 50% with some insurers once you reach five years without any claim and traffic violation conviction since you get both no claim and good driver discounts. Insurers offer rate reductions for every year that passes without any claim. The largest of these rate cuts may be received once you complete the first accident and claim free year. Recent history is more important for insurers than a few years back. Large number of insurers only look back last 3 years.
2. Being a Good Driver Saves Money on Automobile Insurance
Getting traffic violation tickets gets you in trouble with carriers. They see these tickets and points deducted on your record and take away your good driver discounts. The trouble is that one ticket can affect your rates for 3 years and one DUI can cause you trouble for 5 – 7 years depending on where you live.
3. Safer Cars Is Another Way of Saving Money on Insurance
Purchasing a car that is not likely to cause an accident is a definite way of lowering your premium. There are vehicles which are known to cause road accidents, heavy injuries and large damages. Avoiding such unfavorable automobiles and buying the safer ones instead will help you economize. This is even more true if you have checkered driving history or you are a young driver.
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 discount on its own.
4. Safer Neighborhood Means Cheap Auto Insurance
Where you reside is yet another consideration for reduced car insurance 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 the insurers 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 Auto Insurance
Another solution is by keeping your policy tight. People who are in insurance 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 to your policy. Remember, cancelling your cover that only costs few dollars per month may not be a smart thing to do if you have no way of paying for the repairs. Purchase the right amount, nothing more or less.
6. Take More Responsibility with Higher Deductibles
Increase in deductibles is a good way of cutting premiums. This is because the insurer will see that you are willing to take more risk and avoid small claims that may arise. Increasing deductibles will generally result in some savings. However, you should not overdo it by setting too high deductible. It is too high if you don’t have enough savings to pay for deductible twice in a year.
7. Good Credit is an Effective Way to Save on Car Insurance
Getting a cheaper quote can largely depend on your credit score with some insurers. There are many reasons for it. One of them is that companies believe policyholders with tight budgets make more claims. Also, they don’t want customers who will have payment issues in the future. Insurers will not be happy losing drivers with poor credit score to their competitor. But they don’t believe they need to break their back to win over a potentially troublesome driver. That is why applicants with good credit score gets large discounts while poor credit history result in higher premiums.
8. Bundle Home and Auto Policies and Save
Bundling is one of the easiest ways of saving on both policies since you will need to insure both your home and car. You probably have more money saving opportunities if you can bundle different policies but these two are the most commonly bundled policies.
9. Shopping Is the Easiest Way to Save Money on Car Insurance
Some motorists with average driving records can save more 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 as if there is an unbreakable bond between them and insurers. Always check for the best prices and then decide what to do.
10. Get Student Discounts to Reduce your Premium
Sadly, there are not many ideas to save on vehicle insurance for young drivers. You don’t have insurance history and you are an inexperienced driver. Your credit history cannot help you too since you may either have no credit history or have a poor one. But you can save a lot of money if you can get affordable teenage car insurance with student discounts. So, look for a student friendly company and qualify for student discounts.