9 ways to lower your car insurance costs

Kariuki Maina
By Kariuki Maina 7 Min Read

Contracts used to be signed with a handshake and promises in the past. People don’t actually deal with things like insurance since they rely on their neighbors’ kindness to cover unlawful harms. Auto insurance will soon become a need for responsible people to purchase due to a number of factors, including increased speed and the expense of auto accidents. Shortly after, the federal government imposed a requirement that at the very least all automobile owners maintain auto insurance. Over the past ten years, the requirement for vehicle insurance has grown, which has increased insurance complexity while also necessitating more cost-conscious auto insurance shopping.

1. Shop around

It pays to compare prices as they differ from business to business. Obtain a minimum of three pricing quotations. Direct phone calls to businesses are an option, as is online information. Comparisons of the costs charged by top insurers may also be available through your state’s insurance administration.

Insurance is something you purchase for financial security and mental comfort. It’s crucial to choose a financially sound business. Consumer publications and rating services like AM Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings) may be used to research the financial stability of insurance providers.

Obtain quotations from several insurance providers. Many people sell by using their own agents. The insurance firm and these agencies have the same name. Some sell via independent brokers that provide plans from several insurance providers. Some people don’t employ agents. They do telephone or online direct sales to customers.

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Don’t just price shop. Obtain references from friends and family. Ask your state’s insurance department whether they have data on customer complaints broken down by business. Choose a salesperson or customer service professional who is willing to answer all of your inquiries. You can compare insurance rates using the checklist on the back of this leaflet.

2. Before you buy a car, compare insurance costs

Examine insurance rates before to purchasing a new or used automobile. The price of the automobile, the cost of repairs, its general safety record, and the possibility of theft are factors that influence car insurance costs. For features that lower the danger of theft or injury, several insurance companies give reductions. You may obtain information from the Insurance Institute for Highway Safety to assist you in choosing a vehicle (www.iihs.org).

3. Ask for higher deductibles

You must pay deductibles before your insurance coverage begins to provide benefits. You may significantly reduce your expenditures by asking for greater deductibles. For instance, raising your deductible from $200 to $500 might result in a 15–30% cost reduction for collision and comprehensive coverage. Increasing your deductible to $1,000 might provide in savings of 40% or more. Make sure you have enough money saved up to cover a higher deductible before making the decision.

4. Reduce coverage on older cars

Consider removing comprehensive and/or collision insurance on older vehicles. Buying the coverage could not be economical if your automobile is worth less than ten times the rate. You may learn the value of a car through auto dealers and banks. Alternatively, you may check Kelley’s Blue Book online (www.kbb.com). At renewal time, review your policy to make sure your insurance requirements haven’t changed.

5. Buy your homeowners and auto coverage from the same insurer

If you get two or more different forms of insurance, many insurers will give you a discount. If you have more than one car covered with the same provider, you can also receive a discount. Some insurers provide discounts to loyal clients. However, it still makes sense to comparison shop! Comparing buying from several insurance providers to a multipolicy discount, you could save money.

6. Maintain a good credit record

Having a strong credit history might help you save money on insurance. The majority of insurers base vehicle insurance policy pricing on credit information. According to research, those who manage their credit well file fewer claims. Pay your payments on time, don’t take out more credit than you need, and keep your credit card balances as low as possible in order to maintain your credit rating. Check your credit report frequently, and get any problems fixed right away to keep your record accurate.

7. Take advantage of low mileage discounts

Some businesses give incentives to customers who drive fewer miles annually than the industry standard. Carpooling drivers may also qualify for low mileage savings.

8. Ask about group insurance

Drivers who obtain insurance through a group plan through their employers, through professional, business, or alumni groups, or from other associations may be eligible for discounts from some insurance providers. If you’re unsure whether this is feasible, check with your work and any organizations or clubs you belong to.

9. Seek out other discounts

Policyholders who have been accident- and moving-infraction-free for a period of years are eligible for reductions from the insurance companies. If you complete a defensive driving course, you can also receive a discount. You may also be eligible for a cheaper premium if the policy includes a young driver who is a good student, has completed a drivers education course, or is attending college without a car.

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By Kariuki Maina Kariuki Maina
In a world full of worriers, be the warrior.
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