Undeniably, everyone would prefer to pay less for any insurance type and not just for car insurance. Luckily, many policyholders can save some money no matter which insurance company they chose.
Thus, although having a car and subscribing to a car insurance plan can be expensive, you can consider using the following ways that will help you to lower the insurance rate as much as possible.
EVALUATE INSURANCE COSTS BEFORE YOU BUY A CAR
Actually, the year and model of your vehicle are two significant factors that can determine your insurance rate. Certainly, sporty, luxury, or new cars are more costly to be insured than the less expensive, more utilitarian, and older ones.
So, in case you are choosing between a few car models to buy, consider contacting your insurance provider to check the rate required for each vehicle, as this could eventually help you save a little money when you pay your premium.
GET MORE THAN ONE RATE QUOTE BEFORE COMMITTING
Usually, prices vary from one insurance provider to another. So, taking your time to choose between different insurance companies can be rewarding as you can easily save half of the cost. You can consider visiting the National Association of Insurance Commissioners’ website and check out the map that lists regulators in every state to have a clear idea about insurance providers that offer low prices.
Besides, remember to check the consumer-buying guide on the site that compares insurance premiums of several companies. Unlike what many people may think, having a low score premium doesn’t necessarily mean sacrificing service quality. In fact, many insurance companies offer great services at a lower price.
GO HIGH ON DEDUCTIBLES
Actually, increasing your deductible can help you save a considerable amount of money on your rates. For example, if you go from $250 to $1,000 deductible, you can save up about 40% on your insurance plan. And you can devote a particular amount of the saved funds to make payments in the case of a claim.
MIND YOUR CREDIT SCORE
Many insurance providers depend on credit scores to set insurance rates. For example, if you have a bad credit score, your insurance rate can be increased to about 50% or more.
To keep a good credit score, don’t forget to pay your bills on time, and remember to regularly check your history that it doesn’t include any items that are not yours.
COMPREHENSIVE COVERAGE AND/OR NIX COLLISION ON OLDER VEHICLES
Actually, if your older car has comprehensive and collision coverage, you may pay for insurance more than what your car is worth. An easy way to know if you should buy the coverage is by adding up your comprehensive and collision premiums altogether and then multiply the outcome by ten. If the vehicle’s worth is less than the outcome, do not consider buying the coverage in question.
ASK ABOUT LOW-MILEAGE DISCOUNTS
Many Policyholders may be eligible to benefit from many auto insurance discounts but they do not get them because they did not enquire about them. Actually, many insurance providers offer great discounts to those whose driven annual mileage is low. So, whatever your case, remember to ask your insurance provider about the availability of any discount.
ASK ABOUT GROUP INSURANCE DISCOUNTS
In fact, insurance providers often offer discounts to subscribers who are members of certain organizations or professions, such as teachers, engineers, or veterans. To check whether you are qualified for any discount, request to have a look at the list of these groups from your provider. After all, qualifying for discounts is a useful way to save money on your car insurance plan.
ASK ABOUT ALL OTHER DISCOUNTS
If your car includes some improved safety features like motorized seatbelts or anti-theft devices, you could get some discounts for that. On the other hand, some providers offer reduced rates to senior citizens and successful students.
However, don’t just focus on discounts. Some of the companies that give great discounts also have higher rates. Besides, when high-priced providers offer you considerable discounts, you’ll still have to pay more anyway.
AVOID LAPSES IN COVERAGE
Actually, having coverage lapses regardless of how short it is, can get you disqualified from receiving discounts. Lapses in coverage are used against you, as it can increase your premium. Therefore, don’t forget to always pay your insurance bills on time. Additionally, in case you want to change your provider, consider waiting until the new coverage takes effect before leaving your previous provider.
THINK TWICE ABOUT PAYING IN INSTALLMENTS
Usually, most insurance companies charge an administration fee to pay in installments. For example, one insurance provider charges $10 per installment to policyholders who break up their bills. To avoid this, think of paying your premium in advance.
Certainly, those who pay small premiums find this charge more significant. However, if you have a large premium to pay, you can consider not paying upfront and instead think of investing your funds elsewhere, in this case, the installment route may suit your needs and requirements way better.