Car insurance is an expensive affair, but you need it. Being a father, you hate thinking about those 2:30 am phone calls. I received one last week, and by god’s grace, everyone was safe. Insurance saves you from sudden emergencies, and you appreciate having good insurance coverage at that time. Good insurance doesn’t cost an arm and a leg, but you have to invest a considerable amount of time in getting a better deal. Here are some tips to reduce your auto insurance premiums.
1. Get Multiple Quotes
Don’t just stick with one insurance provider. Get quotes from multiple insurance companies. I am sure you must have purchased car insurance in the past without following this comparison step. You can call it inertia. People are stuck with a single insurance provider for years, and they never know about lower insurance premiums and the potential to save money in the longer run.
You might be astonished, however, by how much auto insurance premiums can vary. According to a study on car insurance in California, the dedicated team compared insurance rates for various hypothetical drivers. During one scenario, the premium quotes for an identical policy ranged from $500 a month up to $1500. Keep this tool handy and get multiple quotes online instantly.
2. Consider the Car You Drive
Insurance premium cost depends on the car you drive. As per a recent study, the least and the most expensive cars to insure ranges from $1,110 (Honda Odyssey LX) to $3,835 (Mercedes S65 AMG Convertible) annually.
Estimate the cost of insurance premiums before buying your car using this tool. You can reach out to your existing insurance carrier or agent and ask them for a better deal.
3. Adjust Your Deductible
Insurance is a necessary evil. Whether auto, health, or life, insurance protects us against losses, we could not otherwise handle financially. We should, therefore, have insurance coverage to handle the unacceptable losses, but no more.
A $100-200 deductible is just too low for many out there. If you can easily handle a $1,000 loss, then why set a deductible at $100 or $250? Believe me; you are just paying for the insurance you won’t ever need.
So the real question is – how much can you save by raising your deductible? The answer varies and depends on various factors, so better consult with your insurance agent or carrier. As per one study, you can save 9% by raising the deductible from $500 to $1,000.
4. Combine Policies
If you own a house, car, or other movable and immovable properties, then you should pay attention here. I am pretty much sure you have multiple insurance policies; there are a couple of reasons to combine all insurance policies with one carrier.
First, it’s quite an easy way to simplify your finances. It’s always easy to work with a single carrier than to work with a couple or more carriers.
Second, you can get a handsome discount. Combining home, auto, and other insurances mean you can get a bundle pack for a considerably lower rate than what you will pay individually.
5. Guard Your Credit
Having an outstanding credit score helps you cut insurance premium costs. In most states, insurance carriers consider your credit history in deciding premiums. Research has shown that there is a meaningful relationship between how we handle our finances and our insurance claims history. And there is a significant difference in premiums.
As per the Consumer Reports, a single driver has maintained a good score paid somewhere between $68 to $526 more per year compared to similar drivers with the best ratings. It also depends on the state you belong to.
In Virginia, for instance, Consumer reports found that a poor credit score can cost a driver $1513 more in annual auto insurance premiums.
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6. Claim Your Discounts
Are you aware that auto insurance companies offer plenty of discounts? Many of you might think, such as a discount for safe driving. Other discounts may surprise you, like a discount because you are among the United States Chess Federation.
Here’s a list of a few discounts you can avail of:
- Good Student
- Combining Home/Car and other insurance
- Multi-Car
- Accident-Free
- United States Chess Federation Member– Affinity
- Paperless
- SmartRide (Evaluation based on how safely you drive)
- New Vehicle (Discount for cars having age < 5)
It is highly recommended to contact your insurance carrier or agent and check out any other discounts on offer.
7. Pay By the Mile
One good way to reduce car insurance is by paying for insurance by the mile. Though it’s not available in every state, paying by the mile can lower both the miles you drive and the corresponding premiums you pay. A quote from a leading pay-by-the-mile insurance company recently introduced a cost of 3.2 cents per mile.
8. Reduce Your Coverage
Similar to the deductible, you can save some serious cash by reducing your car insurance coverage. After a few years, the need to insure against damage to the car decreases.
According to Esurance: In many cases, the premium you pay on comprehensive and collision coverages including the deductible you opt for may outstrip the overall value of the car itself. Since the maximum you can be reimbursed is the value of the car, consider whether you need to include them in your policy.
9. Compare Prices Annually
Getting a reasonable rate on car insurance is just the beginning. It makes sense to compare your existing premium rate each year. It’s relatively easy to do online, and only a few clicks away. Moreover, comparing prices won’t hurt your credit score.
10. Prefer Paying Semi-annually
Every six months, your car insurance bill comes with a couple of payment options. Either pay the 6-month premium in full else opt for monthly installments. By paying in full, you can save over 2% on insurance premiums.
Also Read:- The Ultimate Guide to Reducing Your Cell Phone Bill
11. Drive Safely
The best way to avoid huge insurance costs is by avoiding accidents and traffic tickets. While calculating the insurance premium, both factors are included. Moreover, you can also allow some carriers to monitor your driving pattern.
Individual carriers like Progressive and Nationwide offer Snapshot and SmartRide, respectively. You need to plug a device inside your car for a few months. The device monitors your driving habits like idle time, hard stops, and daytime versus nighttime driving. Based on the outcomes, you can witness a significant decrease in the cost of car insurance.
12. Contact BillTrim
Many of you don’t have time to research online about the most affordable carrier. Moreover, for cheap insurance, you have to compromise with the size of the car, reach out to various insurance providers for quotes, combine policies, ask for discounts, reduce coverage, etc. which requires a considerable amount of effort.
BillTrim, on the other hand, will do all that for you and negotiate with your existing carrier for a better rate. Our robust machine-learning system analyzes premiums from all other carriers, and the dedicated negotiation team talks to your respective carrier on your behalf. With a success rate of more than 95%, we helped more than 100,000 customers lower their bills to the tune of $1000+ every year.
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