How to Reduce Your Auto Insurance Premiums
If you own a vehicle, you know that you need auto insurance if you want to protect yourself from incurring heavy losses in the event that it is stolen, involved in a serious accident or severely damaged as a result of anything. However, this doesn't make paying auto insurance premiums any less painful. The following are some strategies you can use to significantly lower your auto insurance premiums:
1. Shop around
Just like anything else, you need to do your due diligence when buying auto insurance to ensure that you get the best deal possible. Prices and insurance premiums vary from insurance companies, so it is prudent to get as many quotes as you can by calling them directly or accessing the information online.
Don't forget to ask for recommendations from friends, coworkers and family members.
2. Keep your driving record clean
Auto insurance companies reward safe drivers by charging them lower insurance premiums. If you stay accident-free and avoid traffic tickets, you are deemed to be less at risk of suffering from losses which can save you 5% or more in auto insurance premiums. Most auto insurers also reduce your rate if you go three years without any traffic violation.
3. Maintain a good history
Insurance companies also consider your credit history when pricing auto insurance policies. According to research, people with good credit history have fewer claims and are more likely to pay insurance premiums as agreed. To keep your credit record clean, always pay bills on time, keep your credit balances low and never obtain more credit than you require. Also, remember to check your credit record regularly to ensure it remains accurate and if there are any errors, have them fixed promptly.
4. Raise your deductible
In auto insurance, a deductible is the amount of money that the insured party is ready to pay first before the insurance policy pays for the rest in the event that a loss occurs. For instance, if you have a deductible of $500 and your car sustains damages that require $2000 to fix, you will pay the first $500 while your insurance policy will pay the remaining $1500. The higher the deductible amount, the lower the insurance premiums. However, make sure that the deductible is not too high that you can't pay when you need to.
5. Buy your auto insurance and homeowners insurance from the same company
Most insurance providers give massive discounts to people who buy two or more insurance policies from them.
6. Invest in anti-theft features
Some insurance companies offer discounts for cars with various anti-theft features such as alarm systems, having an ignition cutoff or installing wheel locks.
7. Compare insurance costs before buying a car
Insurance premiums are based on many different factors that are different depending on the vehicle you buy. Insurance premiums may be based on the vehicle's price, age, make, model, safety ratings, the likelihood of theft, among other factors.
8. Buy added safety features
Buy a vehicle with added safety features like anti-lock brakes, airbags, automatic seat belts, electronic stability control, and any others you can afford to have installed in your car. The safer your car is, the more the discounts auto insurance companies offer you.