10 Keys to Lowering Your Car Insurance Expenses

How to lowering Car Insurance Expenses

Introduction

Everybody that drives must have cover on their vehicle. That is just a fact of life. Sometimes that insurance can cost a fortune. Is there any way to lower your insurance fees? The answer is yes, although it may not be exactly what you want to hear. The car insurance company is never going to lower their rates. However, there are measures you can take to reduce how much you are paying.  This article will explain ten of them.

1: Have a Good Driving Record

You don’t have to be a saint; but the better your driving record is, the lower your insurance rates will be. To prevent your rates from skyrocketing later, you must continue to practice safe driving habits.  Additionally, having no tickets on your record is going to help.  Your insurance fees will likely still go up a little bit. That is the way it works.  However, the better your safety record is, the less of an increase you will get.

2: Search for the Best Deal

What does this mean? It means do not go with the first insurance company you find. Shop around a little bit. Compare fees, deductibles, coverage plans, etc. Even if you find a company you like, they should have a variety of plans to select from. Again, search for the best deal you can get. Don’t be afraid to check out a smaller insurance company. You might find the fees are lower, they have more plans to choose from and the service is better.

3: Request Higher Deductibles

This is a way to avoid paying more in annual insurance fees but be careful with this. Most people have at least one collision in their lifetime. If your deductible is too high, it can cost far more if you do get into an accident. That said, this is still a viable option to saving on insurance costs now. Ask the insurance agents to fully explain their policy on deductibles. It is possible with some companies it will not make a difference in the fees.

4: Good Credit is a Factor

It might seem unfair, but it is true. Bad credit can result in higher insurance fees. Many companies do look at a person’s credit history and factor that into the fee. If your broker establishes a good insurance payment rate for you now, make sure you maintain good credit going forward. This will keep your rates from jumping too high later.  

The insurance agent you are interviewing might be relying on research from industry experts. The results of that research indicate that a person who is in good credit standing typically has fewer claims.  The fewer claims you have, the lower your annual premium can be.

5: Ask the Broker about Discounts

Scores of insurance companies offer discounts in many areas of the driving realm. A few of the items they look for are:

  • Theft prevention devices
  • Defensive driving classes
  • Zero accidents within a specific timeframe
  • Any tickets or citations
  • How many vehicles you are insuring?
  • How long you have been their customer?

There could be other discounts available as well. The key is for you to ask about them.  

6: Are You Insuring More than One Vehicle?

If you are insuring two or more vehicles, your prospective broker might offer a substantial discount if you choose him or her for all of them. This could save a lot of money, as opposed to insuring each vehicle separately. You can apply this logic to the number of policies too. If you put all your cars on the same policy, you can save money that way. A similar way is to bundle your car insurance policy with your homeowner’s policy. Insurance brokers will often offer discounts for this as well.

7: Complete a Safe Driving Course

As we mentioned earlier, a lot of insurance companies have discounts if you have completed a safe or defensive driving course. This is especially true if you have scored high on a test. Remember to mention this to the broker when you meet with him or her. The savings could be terrific. Before you sign up for this class, be certain it is accredited.  This is necessary in order to receive the insurance discount.

8: Expected Usage of Your Car

This means if you don’t use your car for commuting to and from work, remember to tell the broker. Using public transportation or carpooling with other people saves a lot of money. This is true of insurance as well as gasoline and maintenance. The less you utilize your car, the less your insurance rates will be. This applies to road trips too.  If you put a lot of miles on the vehicle by using it for road trips, that can affect your insurances costs. Conversely, not doing that will save money on your premiums. Remember to ask the insurance agent about these types of discounts.

9: Think about Getting a Smaller Auto

If you have a gigantic SUV or van or something similar, it is going to cost more to insure. Smaller vehicles are less expensive to insure.  Better still, if you can purchase a hybrid car, such as the Toyota Prius, you could see huge discounts on insurance. Consider this when purchasing a car in the first place.  

10: Investigate Financial Relief

During this time of the Coronavirus, some insurance companies are relaxing their payment structure. They may allow some customers to put off some car insurance debts during this crisis. Keep in mind, you will still need to make those payments, but grace periods could be delayed. You may not see a reduction in insurance fees, but they may be manageable for the foreseeable future.

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