10 Ways to Cut Car Insurance Costs
It's very unlikely for car insurance costs to drop to pocket-friendly levels. The good news is that there are steps that may be taken in order to fend off having a massive dent on your wallet. If currently you are looking for ways to cut car insurance costs effectively, read on - below are 10 of the things that you may try!
Drive Your Car a Lot Less
Have you already heard about low mileage discounts? These are fantastic favors car insurance companies grant individuals who drive less than what's considered as the average number of miles a year or do carpooling a lot. It makes perfect sense - the less a person uses his car, the less likely it is for him or her to encounter an accident or a road-related emergency. Needless to say, drive less if you want to pay less.
Pay as You Drive
Literally, there's a pay-as-you-drive insurance option that you may take advantage of if you are bent on cutting your car insurance costs. Also sometimes referred to as usage-based insurance, it's something in which your premiums are based on your driving habits. Availing of this option entails your car insurer using technologies to track important matters like how many miles and the time of day you drive.
Keep a Stellar Driving Record
Aside from hopping in your car less, there's another surefire way to lower your risk of getting involved in a car mishap: get from point A to point B safely every single time. As a general rule of thumb, the cleaner your driving record the higher your chance of qualifying for pocket-friendly safe driver discounts.
Also Keep Good Credit
These days, more and more car insurance companies are taking into account credit scores when computing monthly rates. It's because they are well-aware of the fact that drivers with impeccable credit records tend to have fewer road accidents. Naturally, if your goal is to keep your car insurance costs low, make it a habit to maintain excellent credit rating. Remember to check your credit report on a regular basis, too.
Maintain a Safe Vehicle
If you wish to avoid spending a lot of money forever on car insurance, consider spending some at the onset. The goal is to show your car insurance company that they're not going to shell out big bucks on you anytime soon. To accomplish that, it's a wonderful idea for you to have your vehicle installed with some must-have safety equipment or features like running lights, antilock brakes and automatic seatbelts.
Get Small to Enjoy Big Savings
There is no denying that it's thrilling to drive around a massive vehicle. But if you don't want to have gigantic monthly expenses, consider getting your hands on a smaller vehicle as it's easier on the pocket to insure. Do you want to keep your wallet and the planet happy at the same time? Then buy a hybrid car!
Pay Up Front
Do you know one of the reasons why today's car insurance rates are sky-high? It's the interest! So instead of spreading the cost of your car insurance over 12 months, consider paying up front.
Get Everyone/Everything Insured
This may sound counterintuitive at first, but insuring several drivers or different vehicles with the very same car insurance company can help bring down the overall cost of your car insurance needs. Of course a car insurance company wouldn't want you running to the competition for your various car insurance-related needs!
Check Available Discounts
Believe it or not, there are lots of discounts available that your car insurance company is not telling you about - well, it's likely for them to be mentioned by your insurer only when you start asking about them! It goes without saying that you should do your assignment: find out what they are and how you could get your hands on them. Don't feel too shy to ask your insurance companies about those discounts that you qualify for.
Spend Time to Shopping Around
Last but certainly not least, consider shopping around because car insurance companies tend to vary tremendously most especially in terms of rates. Obtain quotes from not less than 3 different car insurance companies.
There are many other steps that you may take to cut your car insurance costs - the ones mentioned above are just some of those that can help you to get started!
Potential Rate Discounts
If you qualify for discounts, you may save the amounts shown below.
|5-yr Accident Free||$81|
|5-yr Claim Free||$86|
|Paid in Full/EFT||$47|
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Discounts are estimated and may not be available from every company or in every state.