Almost everyone needs car insurance but not everyone knows how to get the best at the lowest price. Some think it isn't possible to get cheap car insurance, but with the following tips, you can get the coverage you need without burning a hole in your pocket.
Don't assume one company is cheaper than others
Just because a certain insurance company has a reputation for being affordable doesn't mean there aren't other cheaper insurance companies around. Don't let anyone company convince you that they are the cheapest. The only way to really find out the cheapest insurance is to shop around.
Try local or regional insurers
Most people usually aim for big brand insurance companies, but there are several cheaper offers available with local and regional insurance providers. These may be smaller insurers, but they can work with you to pick a cheaper plan with the right coverage. Smaller insurers also have higher customer satisfaction.
Buy a car with low insurance rates
Car buyers pay attention to factors like fuel efficiency and safety, but not to insurance costs. Some cars are cheaper to insure than others. While buying a car, look for models that are known to have lower insurance rates. The Jeep Cherokee, Honda CR-V, and Subaru Outback are some the cheapest cars to insure.
Buy according to your needs
Not everyone needs a big car. If you are a family of two, you probably don't need a five or seven seater car. If you're a single person, you don't need a large sedan. Smaller cars are cheaper to insure and also consume less fuel.
When you buy a car according to your needs, not only do you pay lower insurance premiums but also save money on gas.
Lower your mileage
When you have a lower mileage, your insurance premiums are also lower. But you must make sure that your insurance cover indicates the accurate usage. If you only drive short distances, you should be able to get a new lower limit and also a cheaper premium.
Take care of your vehicle
The better the measures you take to maintain and secure your car, the lower your premium. If you regularly take your vehicle for servicing, and keep it in a covered garage, let your insurer know of this. Insurers often agree to lower premiums on vehicles that are taken good care of.
Avoid collision coverage for older vehicles
Collision and comprehensive coverage cover your vehicle against damages suffered due to a collision with another vehicle or object or in a natural disaster or vandalism, respectively. However, the amount of coverage depends on the vehicle's quality. If yours is an old vehicle with low market value, it's wiser to skip these coverages.
Maintain your credit score
In most states in the US, a good credit score can help you get lower insurance premiums. Paying your bills on time and not getting into debt are essential factors to improve your credit score.
Have a clean record
Driving offences have a big impact on your credit score. If you have no offences, your car insurance premium can be a lot lower. Avoid speeding or breaking signals because there are cameras watching and you will be fined.
When you drive safe, your car gets into fewer accidents. This helps you avoid making frequent claims. When you don't make claims for a long time, you attract a no claims bonus (NCB). This helps keep premiums low.
Get a usage based insurance
If you don't log many miles, you may consider a usage-based insurance policy. The insurer tracks your mileage and gives you discounts on how much and how well your drive.
Raise your deductible
If you buy collision and comprehensive coverage, you can opt for higher deductibles and save money. However, on liability insurance (which is used to pay for damages other vehicles suffer because of you) there is no deductible.
Black box insurance
Certain insurers offer insurance policies based on your daily driving. This is done by monitoring your driving with the means of a black box fitted under the bonnet of your vehicle. It is a popular option for drivers who log only a few miles a day and help lower insurance premiums to a great extent.
Pay online annually
Many vehicle owners stick to the same insurer for years and pay the same rate. But did you know that paying annually is more economical than paying monthly? When you pay your premiums all at once annually, you save money. Also, many insurers offer certain discounts when payment is made online.
Pay a voluntary excess
Most car insurance policies have a voluntary excess, which is the amount that you must pay for any claim. It can be around $150 in general. However, offering to pay more in voluntary excess can often result in a lower premium. You only have to make sure that you are able to afford to excess if you have to make a claim.
If you want to pay lower premiums, you must keep your car safe. You can take several security measures including fitting an alarm, an immobilizer or a tracking device. Just the fact that you have taken these measures can attract some discounts. Living in a safe neighborhood can also keep your vehicle safe.
Additional driving qualifications
If you have completed extra driving qualifications such as an advanced driving test, you may be able to get some attractive benefits, because a higher qualification means better driving skills and fewer accidents and claims.
Ask for discounts
If you add your car insurance with your health insurance or homeowners insurance policies, you may get discounts. Insuring multiple cars with one policy is also often beneficial.
Beware about adding new drivers
Adding your teenaged kid to your policy might seem like a salient idea, but if they fail to drive safe or get into accidents, you will have to pay a higher cost. If possible, keep from adding young drivers to your policy.
Stay put if you're about to retire
While shopping around can get you a good deal in most cases, if you are of retirement age your chances to qualify for insurance go down. If you already have an insurance provider, it is prudent to stay put instead of hoping for a cheaper deal somewhere else.
It isn’t impossible to get cheap car insurance if you follow these tips. While lowering premiums, you will also save fuel and extend the life of your vehicle.