After you’ve insured your car, it is important to know what might affect your auto insurance rates to avoid paying more than required. It is possible for a car owner to know how to save on car insurance while still getting good coverage. Here are some tips on how to lower your car insurance premium:
- Drive safely
If you would like to lower your insurance premiums, you should drive safely to avoid traffic tickets and accidents because they raise your premiums. If you get a ticket, you may have to go back to a traffic school to have it dismissed or to reduce the number of violations points on your driving record. To get this done, you might end up spending hundreds of dollars which you could have saved by driving safely.
- Drive a car that is cheap to insure
The car you drive directly affect your insurance premium especially if you buy comprehensive and collision coverage from your insurance company. Therefore, if you are thinking of buying another car, you should put this into consideration to save on your insurance costs. Normally, cars that are moderately priced and safe e.g. small SUVs and minivans are cheaper to insure, unlike flashy and expensive cars.
- Shop around
Insurance companies have different prices depending on the insurance plan you want. Before you make up your mind to choose a specific insurer, you should shop around to choose an insurance company that offers the best deal. Get at least three companies, research about them, get quotes and then determine which company you will choose. When you shop around, you reduce your premium costs by choosing the right auto insurance company and having an insurance plan you can afford.
- Maintain a good credit record
Your credit information is used by most insurers to cut your insurance costs. Therefore, protect your credit standing by paying your bills on time, avoiding taking more credit than you need and keeping your credit balances as low as possible. To maintain a good credit record, check the record regularly and promptly correct any errors for your record to remain accurate.
- Increase the deductible
Deductible refers to the amount of money you agree to pay to cover a loss before the benefits of your insurance policy are applied. In most cases, higher deductibles result to lower monthly premiums. However, increasing your deductible can result to a car owner paying more from his pocket in case of an accident.
- Consider usage-based insurance covers
This is ideal for those people who drive less. This insurance policy’s rates are based on how much you drive and in some cases how safely you drive. To be a part of this program, your insurance company will install a black box in your car to transmit data on how you drive, when and where you drive and how safely you drive. You can get a discount for a low mileage and sometimes for safe driving habits.