One of the things you will need to budget for annually or after a specific duration is your automobile insurance, which may vary depending on such factors as your driving history, state, gender, age, and company as well. The good news is that auto insurance is not a fixed cost because there are things you can do immediately or over time, that can cut the amount you spend on such monthly car insurance premiums.
Overlooking the necessity of lowering your auto insurance premiums may cause you to incur unnecessary expenses, which can blow your budget through the roof. Here are some tips that will allow you to enjoy full coverage for your car at a cheaper cost.
1. Consider Increasing Your Deductibles
Most, if not all, drivers can confirm that roads know no experience. Road accidents happen even in the most unlikely circumstances, and drivers who have many years of experience are not an exception in this case. Your car insurance should cover the cost of damages in the event of a claim, but you may have to pay some amount upfront before accessing such benefits.
Deductibles represent the money you should pay before your coverage kicks in when making a claim, and the amount in question will depend on your monthly premiums. The more you pay in premiums for your automobile coverage, the less you pay in deductibles and vice versa. When you increase your deductibles, you will pay less in monthly premiums for your car insurance.
2. Beware of The Impact of Lapses in Coverage
The financial commitments you have in addition to the eventualities that arise, which can attract unforeseen/unplanned spending, may cause some of your bills to go unpaid. Any delay in paying your car insurance for whatever reason will increase your future premiums, and that is something you should avoid as much as possible.
If you are switching your insurance policies or providers, do not cancel your former insurance before it expires to avoid lapses in coverage.
3. Opt for A Low-Risk Car
When you purchase an expensive sports car, you should be ready to pay exorbitant insurance premiums because you may need collision coverage since the risk of injury for such vehicles is quite high. Big SUVs and new automobiles will also attract high insurance costs, which is why you should consider owning a small, inexpensive car if you want to save on coverage.
Some entities offer discounts for those who drive alternative fuel or hybrid vehicles, which can lower your car insurance premiums too.
4. Bundle Your Insurance Products
Working with multiple insurance providers makes your work difficult because you need to keep track of each of them, and the risk of lapsing your coverage is quite high in this case. Bundling your insurance policies is a wise idea because it will not only allow you to use one provider for all your coverage needs, but it attracts discounts as well, which will bring down the monthly premiums for your car insurance.
5. Fit Your Car with Safety Features
Minimizing the risk of damage or injury can reduce your car insurance premiums, and you can achieve that by fitting your automobile with safety features. Some of the safety features you can consider installing in your car include automatic seatbelts, airbags, electronic safety controls, and anti-lock brakes.
The upfront cost of safety features for your car may seem much of an unnecessary expense, but the savings that such an investment attracts over time through low car insurance premiums is an indication that this is a wise decision.
6. Enroll for A Defensive Driving Course
One of the ways you can demonstrate a high level of responsibility as a driver and lower your risk of becoming a victim of an accident is by taking a defensive driving course. Individuals who enroll for defensive driving courses are more careful on the road especially when they encounter irresponsible and erratic road users.
You will also enjoy discounts on your car insurance premiums from most providers if you take a defensive driving course, which will lower your expenses on the same.
7. Inquire About Group Discounts
Doing some research on affordable car insurance can help you identify providers that offer discounts for specific groups. Some of the groups that may attract car insurance discounts include military and teachers as well as organizations that work directly with particular insurance companies. Students and senior citizens with a clean driving record can also get discounts for automobile insurance premiums and so as you do your research check whether your professional or personal network can help you lower your car coverage premiums.
8. Drive Less
Car-pooling, using public transportation or riding a bike are some of the other mobility options at your disposal whenever you need to move from one point to the next. Every time you use your bike or public transport and when you car-pool, it implies that you will use your car less, which lowers the risk exposure on your vehicle, and it keeps its mileage low as well.
Vehicles with low mileage are a lesser risk for insurance companies and if you own such a vehicle, you will most probably pay less for its insurance premiums.
Providers of various insurance products offer several benefits and discount opportunities for drivers who bundle their coverage and those who have clean driving records. Here are some of the things you should consider as you seek to identify insurance services providers who offer discounts and benefits that can lower your car coverage premiums.
- A comparison of regular prices and discounts from different insurance companies.
- Insurance bundles that include such products as homeowners’ coverage.
- Group and organization memberships that attract discounts on vehicle insurance premiums.
- The amount you will save when you pay your car insurance premiums in full annually or six months at once.
- E-bills and other documentation that an insurance provider can avail to help you keep track of your vehicle coverage premiums.
An assessment of the amount of money you will save annually on your car insurance premiums when you apply these tips will give you a better understanding of the necessity of reducing expenditure on such coverage, which eventually gives you more value for your money.
Start cutting back on the cost of your automobile insurance premiums today by talking to an expert who will guide you accordingly.