There are ways you can save more on your car insurance. Many vehicle owners are unaware of the basics involved in the calculation of auto insurance premiums. You can in fact take practical steps to get better quotes from car insurance companies. Here are 10 things you can do to save on your auto insurance.
1. Get Multiple Quotes
If you don’t shop around to compare car insurance rates, you are highly likely to pay several times the premiums from an affordable quote. It is not difficult to get multiple quotes from different insurance carriers. Compare insurance premiums from different companies. You will find that many companies offer quotes which can be almost half of some other insurance companies are offering. Ignoring this step could mean that you are highly likely to pay unnecessarily higher premiums while getting the same level of coverage.
2. Better Credit Score Means Lower Premiums
A good credit score is often associated with lower interests rates for different types of credits. However, it can also mean getting lower insurance premiums. You can get a free copy of your credit report once a year from any of the authorized credit reporting agencies like TransUnion, Experian and Equifax. You can take several steps to help improve your credit score.
- Check the report for any kind of errors and take steps to have them rectified
- Pay your bills on time
- Clear of balances as much as possible
When you can show that you are responsibly managing your finances, it can help in getting you better quotes.
3. Seek Low-Mileage Discounts
The lesser the time you spend on the road, the lesser a liability you are likely to be. And this factor can translate into lower insurance premiums. Many insurance companies will be ready to offer special discounts to you if your annual mileage is lower compared to the usual norm. There are a few steps that can help you reduce your mileage:
- You can find ways to create a shorter commute
- Office vanpools can help in reducing the number of hours spent driving your own car
It will require some research to find and compare auto insurance companies to find the ones that offer higher discounts. It will often require you to ask them if they can offer such discounts.
4. Seek Other Kinds of Discounts
There are several other factors that can help you get lower quotes through discounts. Some insurance companies can offer you special discounts if you install safety and security features on your vehicle. For example, installing anti-theft systems is an effective step in seeking discounts. Even students and senior citizens can seek better rates under certain circumstances. You should ask for such discounts when getting quotes from the carriers.
5. Avoid Paying in Installments
If you choose to pay your insurance premiums in installments, you are going to pay more. Paying in smaller installments may seem like a good option, but it will actually increase the premiums you pay. Insurance companies that provide this option are going to charge you an administration fee. You could be required to pay additional charges for every installment. It is best to pay your premium upfront in a single amount. The more the number of premiums, the more you are going to end up paying.
6. Choose the Autopay Option
You can further avail more discounts from your insurance company by signing up for the autopay option. This will allow them to automatically deduct the monthly premiums from your account. The carrier is highly likely to offer you a discount because this will help them ensure that the premiums are paid on time.
7. Moving to another State
Although you shouldn’t just consider moving to another state for the sole purpose of getting a lower rate on your car insurance, if you have better job opportunities elsewhere you should consider this factor. For example, the auto insurance rates are among the lowest in North Carolina.
In fact, where you live within your own state can also have an impact on the car insurance premiums you pay. If you can move just a few blocks, it can mean more savings on your insurance. Make sure to check and compare auto insurance rates for the locations you intend to move to.
8. Prevent any Lapses
Even a tiny lapse in your insurance policy can mean increased premiums. It can also make your prevent you from getting the discounts you were already getting. Thus, your car insurance premiums can jump suddenly. So make sure not to let your policy coverage to lapse due to any reason. Even when you are planning to switch between carriers, don’t allow the previous coverage to lapse.
9. Increase Your Deductibles
Raising the deductibles is a strategy that helps you save on the premiums but with the caveat that you will have to pay more if you need to claim the insurance. Make sure to keep your previous safety record in mind when opting for this step. If you are a safe driver, this could be an effective strategy to help lower your car insurance rates.
10. Maintain a Safer Driving Record
Maintaining a safer driving record is also an effective way to get lower car insurance quotes. Driving record is in fact among the biggest factors that determine your insurance premiums. Getting involved in accidents or traffic violations can have a significant impact on your premiums. Insurance companies can check your record for anything from 3 to 5 years back. Completing defensive driving classes can also be beneficial in getting lower quotes.
So follow these tips to ensure that you are able to get better car insurance quotes. Start improving your credit score, become a safer driver, seek discounts, spend lesser time on the road, and think of moving to another location. Even if you cannot follow all these tips, you can certainly follow many of them.