Car insurance is a must when you are buying a vehicle. These days, car insurance premiums have gone up sharply. Due to an increase in traffic and car prices, it is not going to come down in the near future. There are certain tricks to minimize your car premium. You don’t want to waste unnecessary money on insurance premiums. By following the points below you can find ways to lower your car insurance premium.
Ways to Lower Your Car Insurance Premium!
#1. Read the policy:
Don’t be careless. Read the policy. Check all the points. This will give you an idea of what the insurance is offering and at what cost? If it satisfies your needs then buy the product. At least you know what you have purchased and what the policy is offering. You can deduct the coverage you don’t need in your insurance. In this way, you can lower your car insurance premiums.
#2. Shop around:
When insurance is about to expire before buying, stop for a while. Go and take a quotation from similar insurance companies. You might get a better deal. Don’t search for cheap insurance. Check the company’s background, its credibility, and reviews from other customers. You can check online and read from the company websites. Compare the policies and then buy what suits you.
#3. Drive with caution:
With an increase in road traffic, rash driving accidents are increasing. When you are driving always stay alert. Don’t be careless while driving a vehicle. Accidents can happen when you least expect it. Don’t run too fast. Rash driving often leads to horrific accidents. If you are attentive then there are fewer chances of an accident. Keeping a good driving record can help you to lower the insurance premium.
#4. Multiple insurances at a time:
If you have a logistics company then insure multiple vehicles at a time. It will cost you less. Purchasing insurance one vehicle at a time, you can end up paying more. With an increase in the number of insurances the prices drop. This is because the insurance company wants more business. For that reason, they will drop their premium just to get more business. You can use this trick if you own multiple cars and have a lot of members in your house.
#5.Improve Credit score:
Maintaining a good driving record can lower your insurance premium. But if your credit rating is high this may also attract the insurer. You might end up getting a higher discount if your credit rating is good. Try to maintain a good credit rating by paying your bills on time. This will gradually increase your credit rating over time.
#6. Student Discount:
You can ask for a student discount if your teenage son or daughter is good at study. By showing proof of good marks, you can get a good amount of discount while paying for the insurance. This type of insurance lasts until your child turns 25. This type of discount can go up to 39%.
#7. Opt for a single insurer:
Try to purchase your homeowner’s insurance and vehicle insurance from the same insurance company. If you do so the company will offer you a good discount when you are purchasing the policies. If you are a long term customer then the company may reduce your premiums further. But you can shop around looking for good deals in a year or two. You may get one if you are lucky.
#8. Reduction in coverage:
Suppose your car is old and been paid off. Think about the reduction in coverage. Try to figure out the value of the car from the bank or the insurance company. There is no need to purchase accidental coverage. You can think about dropping some coverages as you won’t get the desired claim as the value of the car has depreciated.
#9. Buy the car you need:
Buying a bigger car can be your dream. But it is better that you go for a compact car which will be cost-effective. Big cars attract higher insurance premiums. If you don’t need it then probably you should go for a car that saves money. Think about buying a hybrid car. These cars are environment friendly and also attract higher insurance discount. Be wise before you purchase a car as the additional expenses will go up subsequently.
#10. Talk to your agent:
Read the policy and discuss it with your agent. There may be some point that you have understood differently and it means something else. Make it clear from the agent as you don’t want to suffer later for that. Be very clear while purchasing an insurance policy. He can also help you to find better deals. So always ask your agent about your queries. Do have no confusion in mind. Clear whatever doubt you have.
Also read: Does car insurance cover natural disasters?
#11. Install security devices:
Install security devices in your car like steering lock, ABS, anti-theft device. This may lower your insurance premium. Security devices not only protect your car it also lowers your additional costs. You can inquire from the insurance what discounts they give when there are extra security features installed in the car. If you are only thinking to lower the premium then check if the installation is worth it. It may cost a lot installing security features but if you save a very small amount of insurance it is not useful.
#12. Drive less:
Many insurance company offer discounts if you drive less than the average number of people in a year. Therefore if you drive less you can get this type of discount offer from the insurance provider. It will do less harm to the environment too.
#13. Don’t claim on small damages:
This is the last suggestion to lower your car insurance premium. Don’t claim from the insurance company if it is minor damage. Local mechanics can service at a cheap price. If you claim less you are eligible for no claim bonus for every claim-free year. So skip small claims.
Many companies like State Farm, Geico, etc. are giving out auto insurance policies. But before buying a car talk to your financial advisor or your insurance agent. Know all about an insurance policy. Buy a car according to your need. Insure your car properly. With an increase in road traffic, the incidents of accidents have gone up. So it is better to be insured. If you want to know more about how to lower your car insurance premium, feel free to ask in the comment box. Share it if you like the article.