How To Save On Auto Insurance Costs

How To Save On Auto Insurance Costs

Auto insurance costs can be very expensive for drivers. It is important for people to know the best ways to save money. Here are some tips on how to save on auto insurance costs.

  1. Obtain Multiple Quotes

Quotes change often so people need to get them every few months. Each company offers different rates at different times. Shopping online and conducting insurance rate comparisons can give people an advantage so that they can time their policy purchase at the right time.

  1. Work with an Insurance Agent

Working with an insurance agent directly can give consumers access to industry knowledge. Agents can walk people through the quote process and give out vital information about what each policy covers and how to save the most money on insurance coverage.

The best way to approach this is to visit three agents in the area that work for different auto insurance companies. Drivers can then take notes and ask for print outs of what each policy covers and how much their premium rates will be. This allows for a more accurate side-by-side comparison.

  1. Bundling Policies Can Be a Great Option

Most people have a few insurance policies. One way to save money is to bundle these policies together. People can bundle life, renter’s, home owners and various types of vehicle insurance together. A loyalty discount is often given to people that decide to do this.

  1. Raise Your Insurance Deductible

Policy holders can raise their car insurance deductible as a way to save money. A deductible is what you pay before your insurance coverage kicks in to pay for a claim. Higher deductibles can be a burden so people should set them accordingly. No additional money needs to be spent if a driver does not file a claim. For example, if a deductible is $1000 and a repair is $250 then people should consider just paying out of pocket themselves for the claim.

  1. Ask about Discounts

Drivers can receive discounts from auto insurance companies for being accident or moving violation free, taking defensive driving courses, getting good grades and enrolling in teen driver’s education programs.

Teen and college aged drivers must maintain at least a 3.0 grade point average to receive the discount. This can be a tremendous financial help as teen drivers are more costly to insure because they have the least experience.

  1. Clean Up Your Driving Record

A person’s driving record is closely examined before insurance agents will underwrite an insurance policy. People need to ensure that any points violations have been resolved. People can save money by avoiding getting moving violations such as speeding tickets.

  1. Choose an Economical Car

People can cut their insurance costs by driving an economical vehicle that has the latest safety and security features on it. Insurance companies worry about losses due to accidents and theft. Doing online research to choose a safe and reliable vehicle can help people to lower their premium rates because the vehicles that they drive have good crash test ratings.

  1. Reduce Your Coverage on Older Cars

Many older cars have an excessive amount of insurance coverage on them. The value of the car should not exceed ten times the premium rate. Liability coverage only can be a great option for drivers with older vehicles that want to reduce their insurance costs. This protects the driver and can lower the premium rate significantly.

  1. Improve Your Credit Score

People who have a good credit rating are seen as less of a risk to auto insurers. This is because these individuals are more likely to act responsibly and file fewer insurance claims. This makes insurers want to give them lower premium rates. Before trying to get a new insurance policy, it can help to pay off some debt. This can allow drivers to improve their credit scores.

The best way to improve a credit score is to remove any negative items such as debt collection accounts. People can reach out to their creditors and settle these delinquencies which can help to repair the score. Drivers should also consider trying to have as much of their available credit line available because this move can also help with improving the score. Policies come up for renewal every six months so planning ahead can be beneficial.