Car insurance – that is something we usually find to be a necessary evil. Most of us do not really want to opt for a car insurance option, but it remains to be a legal obligation in most regions across the world. So, the next best option would be inevitable to find how you can save on car insurance.
While there are several guides and tutorials that suggest ways to choose the right car insurance, but there aren’t many tips to save money on car insurance. In fact, there are dozens of car insurance companies that vie for your attention and looking for business from you, but none of them offer you any better ways to save on car insurance.
Well, we witnessed this void and thought we will share a few pieces of advice or better still, a slice of our own experience so that you can get a few tips for car insurance quotes so that you can save on car insurance and put that money to some other cause.
How to Save on Car Insurance – top 7 Useful tips
Once you have decided what type of car insurance do you need, check out the options for the best and lowest auto insurance quotes. Make sure you hop around a little before making a decision, and yes, never forget about the small insurers who may have a really fantastic plan – though they may be a bit unheard.
#1. Get more than one Quotes
Yes. Relying on one single player may not be the right choice. Especially when you have plenty of options available to you. In fact, this should be an obvious option, and that is perhaps what we do with every one of our purchases. Car Insurance should not be an excuse either.
You would really be astonished by the enormous variations in the auto insurance quotes offered by different players in the insurance sector. A recent study shows considerable variation in the quotes offered by each of those insurance providers.
Moreover, each of the regions has differential offers. In doubt? Have a look at this –
- If you are in South Carolina, you would find Travelers offering the best possible package.
- In Florida, Geico is a costly player, while State Farm offers a cheaper package.
- If you are in Massachusetts, you will find that Travelers has costly plans.
- In the case of California, Geico would be the cheapest, while State Farm would turn out to be expensive
Perhaps it would be a great option for shopping around if you really want to have a few good options to save on car insurance.
#2 Check out the discounts
Auto insurance agents do provide a wide range of discounts and offers. Look for the right kind of discounts. Of course, the discounts offered would be dependent on a lot of factors, and not everyone may be eligible to avail them.
There are several types of discounts available and can help you save on car insurance. Some of them can be
- Discounts for students who have received excellent grades
- Discounts for drivers who have taken a defensive driving course.
- Nw drivers who have taken part in advanced courses.
- Bundled car insurance with other types of insurances such as home insurance
- Discounts for the safety equipment installed in the car
- Discounts on having a clean driving record
- Discounts on paying the insurance premium for a longer-term
- Discounts for a few specific affiliate groups or members of an organization.
However, never get fooled by the array of discounts flashed before you. Compare the auto insurance quotes as well.
#3 Improve your credit score
Creditworthiness is what makes you eligible for better deals in any financial sector. Car insurance is not an excuse, either. If you have a decent or an excellent credit score, you can be in for getting better insurance quotes. In fact, a better credit score will improve your insurability.
In many cases, insurers take the credit score into account when determining your quotes. If you are looking to save on car insurance, ensure that you check your credit score before approaching an insurance firm. Get your credit score and ensure that everything falls in line. If you think there is something to be worried about, you can undertake the task of repairing your credit score. This can include several steps, such as transferring your balances on a credit card.
Want to know how a credit score can make or break your financial prospects? This resource can be quite helpful in understanding the effective strategies for improving your credit score.
#4 Choose your car wisely
The car that you drive can have its own impact on the insurance quotes assigned to you. Vehicle damage is one of the areas that would assume a lot of importance and a critical factor in calculating the insurance quotes. The build quality and construction of a car will have a lot of bearing on the premiums.
You can undertake a thorough study of the car insurance before finalizing a model that you want to buy. It may be a good idea to get in touch with your insurance agent before finalizing a car and find out the insurance coverage that each of the models you have finalized would bear.
This tool can be quite handy in letting you make a beginning.
#5 Opt for the perfect Deductible
A higher deductible can help you reduce your premium. Of course, it comes with a risk of having to pay more from your pocket if something untoward happens. However, if you are one of those drivers who care for safety, who knows you would not need to do that.
Hiking up your Deductible by just around $ 300 can help you get a lesser premium. In fact, it can reduce your auto insurance premium to anywhere between 15 to 30 percent. Of course, that would be applicable in case of comprehensive and collision insurance options.
A recent study has found about the following interesting outcome of raising your deductible -
- Increasing the deductible from $ 250 to $ 500 reduces your premium by at least 7 percent
- An increase from $ 500 to $ 1000 can reduce your premium by 9 percent.
- Increasing it from $ 1000 to $ 2000 can reduce your premium by up to 16 percent
#6 Use the Pay per Mile Insurance
If you are someone who does not drive long hours, or if you have been able to go through a risk-free driving, it may be a great idea to check out the options for Pay Per Mile insurance or usage-based car insurance. Several auto insurance providers offer such plans. Notable among them can be Drivewise from AllState, Snapshot from Progressive and Drive Safe and Save from State Farm.
You will be able to get better discounts on those plans where the insurers will track your performance based on how much, when, and how you drive. In case you are someone who drives less than 10000 miles a year, you can definitely benefit a lot from a usage-based car insurance or pay per Mile scheme.
# 7 Opt for an annual rate check
Make sure you compare your current car insurance rates each year. Of course, if you have been with a single insurer for a long time and have had a safer driving regime, it may not be necessary to change them as you would continue to get good car insurance quotes.
You can compare the insurers online. Services such as Answer Financial and Insure.com can be quite handy enough in comparing the different plans fro a varied set of insurance providers. You can even check out the possibility of aligning with a local agent who can compare the plans for you.
Well, with a host of companies vying for your attention, it isn't really much easy to find the right quotes fr your needs. However, checking out a few options, such as the ones we just discussed, can help you save on your car insurance to a better extent.