How to Lower Your Auto Insurance Costs

insurance agent talking to a couple

Car ownership does not involve only the purchase of a car but also having it insured during its functional life. That being said, it’s a rather expensive responsibility. And while many of us would like to skip the insurance thinking their tender loving care would be enough, getting that auto insurance is still the most practical way to keep not just this useful asset but also yourself, your loved ones, and your other assets safe and untouched.

Contrary to the common notion that auto insurance or any insurance products are seemingly lifelong, demanding financial obligations, there are ways you the car owner can ultimately avoid the regret of not having benefited at all from the hefty sum you doled out for your insurance before it expires. You’ll be surprised at how it’s been all up to whether you bite the bullet into customizing your insurance to your specific needs or not and, most often than not, you’ll realize going through all that hassle is worth it in the end. 

Of course, the discount rates you could avail still depend on more external factors like your city, its laws, the road safety, and accident incidence which aren’t yours to alter. That is why it’s very important to thoroughly discuss the terms of your insurance policy with your broker before finally signing it. If you have an outstanding policy, the terms of which you can no longer amend, take our word for it and do not be on the losing end in your next one by considering any one or more of these tips, whichever could apply to you:

Discuss Your Insurance with Your Broker

Customizing your insurance policy according to your need could be as easy as discussing it with your broker because usually, he’s aware of the legal equivalent of what you’re meaning to include in your policy. For instance, don’t hesitate to consult them and have them assess your financial stability to possibly pay for higher deductibles which can significantly reduce your annual premium. Also, if you have an old car, the price when you bought it must have certainly depreciated through time, and think it’s pointless to get it insured, you can opt for one without collision coverage. 

Bundle it Up

If you own multiple cars or co-own these with family or a spouse, you can get them insured for cheaper if you get a combined policy for these. Another way you can save on fees is if you avail multiple policies, one each for your house, your car, and other assets, at once if your insurance company offers such. Some companies would even be pleased to offer you discounts if you refer to them more business, your friends who are also looking into buying insurance for instance.

Be the Safest Driver Possible 

driver concept

It’s a no-brainer that, for you to be eligible to get auto insurance in the first place, you should have maintained a good credit rating for a certain period, 3 or 5 years for example. In the unfortunate event that you did incur some traffic violations proving you to be a high-risk driver, you have the only option to qualify for high-risk auto insurance. If you haven’t had any bad record and you want to keep it that way, see how you can improve the outcomes of your insurance coverage:

  • Get certified for finishing an accredited defensive driving course.
  • Install tires fit for the more risky driving on slippery winter roads. Companies could offer a discount on your collision coverage if you report this.
  • Install anti-theft devices like dashcams (this could help in recording collisions too), car alarms, steering wheel locks, and tailgate locks. Likewise, you can be discounted for making your vehicle extra theft-proof.
  • Downsize your vehicle, only if you want. Higher-end cars run more risk of getting stolen, and they have more expensive parts which could rack up your premiums.
  • If you don’t have one yet, secure for your care its private parking space to keep it safe.

Commute from Time to Time

You may or may not remember this but your insurer asks you how many miles you drive annually and this partly determines your rates. Be wiser the next time and ask your broker if they maintain a mileage threshold and, if they do, try to keep yours below that by taking mass transit from time to time. Of course, you should make it a point to do comparative costing between taking the car or the bus.

Speaking of mileage and if you’re one to keep it low, there’s pay-as-you-go insurance that companies may offer you. Aside from mileage, the amount you pay will also be based on how well you stay within speed limits, what time of the day you drive, that is if you tend to drive during rush or lean hours, and, of course, how safely you drive. This usage-based program is such a practical option.

Keeping these things in mind is one but, if your policy is about to expire, shopping for cheaper policies is still a viable option but you could be running the risk of getting ripped off. Assessing how capable you are at handling big out-of-pocket expenses is also wise to do because paying annual fees all at once is always cheaper than paying them by the month. This applies to other forms of insurance and investments too.

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