Car insurance can be costly and quite often it happens that car owners get targeted with ads with lucrative offers to help reduce their car insurance. So how can one manage to lower their car insurance in order to save up money while getting a good deal out of car insurance? Well let us have a look at ten tried and tested ways to reduce your car insurance.
1-Pay as you go schemes
Pay as you go schemes are ideal for those who do not use their cars very frequently. Such car owners can save up on insurance by signing up for insurance companies that charge insurance at a base rate, based on per mile usage. Other pay as you go insurance providers have travel limits, such as discounted insurance rates for travelling under 10,000 miles annually.
Therefore pay as you go schemes are ideal for those who do not use their cars frequently.
2-Look for discounts
Car insurance companies have a variety of products and discounts that they offer, however mostly the customers are not fully aware of these discounts and insurance companies therefore take advantage of this lack of knowledge of unsuspecting customers.
You can save up a considerable amount of money by asking for all available discounts, special discounts and offers from your car insurance company. Usually they have special offers for military service men, veterans, government employees etc. If you qualify for any such category you can get your insurance reduced substantially.
3-Group insurance
Group insurance plans are ideal for families. It would be more costly to get every family member insured individually as compared to getting everyone insured as a group.
4-Choice of Vehicle
Your insurance rates also depend a lot on the type and quality of your car. The rule of thumb to remember here is that the less risk you carry the cheaper your insurance will be. For this matter if you were to buy a sports car, it would carry a higher risk due to its performance whereas a normal everyday car like Toyota would carry lesser risk.
Cars with safety features and a reputation for being safe, inarguably carry cheaper insurance premiums as compared to cars that may be considered more dangerous.
5-Work on your credit points
Studies show that drivers with a higher financial assessment are more capable in the driver’s seat. Drivers with higher FICO assessments cost the insurance agency not as much as people with a low FICO rating. A FICO rating is simply one more path for insurance agencies to quantify hazard—the very thing insurance agencies look to stay away from. Improving your FICO assessment can likewise assist you with fitting the bill for auto and home advances. Study your credit report and discover approaches to improve your general FICO assessment.
Is it accurate to say that you are searching for an approach to screen your credit needs? Look at ExtraCredit by Credit.com. It has five executioner includes, each explicitly intended to get you out—regardless of what shape your credit is in.
6-Get rid of unneeded insurance
Aged cars that have been used for a long time and thus have a depreciated value, require less insurance cover relying upon their general market value. For instance, you may not require complete coverage on a vehicle if its worth is not exactly your deductible joined with your insurance cover. In the event that you have a vehicle that is just worth $2000 you may choose to drop your deductible and purchase a second hand vehicle for the same amount instead. On the off chance that you don’t drop unneeded protection, you can wind up spending more on your expenses than what the complete vehicle is worth.
7-Consider increasing the deductible
The deductible is that money an insurance holder pays out of pocket in case of any accident. Increasing the deductible, if supported by insurance providers policy may result in a reduced monthly premium. Consult your insurance provider, whether this is an option that is available to you or not. If yes then it is not a bad bargain to go for.
8-Lump together different insurance plans
A more sensible option would be to lump up your auto, home and health insurance plans into a single plan. This would allow you to avail any discounts on offer because generally insurance companies offer lower rates to customers who go for bundled insurance cover, as this allows the company to achieve economies of scale.
This is also sensible on part of the insurance holder, as you only have to pay a single insurance premium each month instead of two or three different insurance covers. Insurance companies also treat long term customers with bundled plans differently and have loyalty discounts and offers for them.
9- Insurance hopping
Insurance rates are skyrocketing, so your premium is also going to increase over time. Nonetheless, an immense spike in your protection bill may mean it’s an ideal opportunity to switch insurance providers. How does this make sense? Because if the insurance premiums rise, it will also increase competition in the market and therefore there will always be insurance companies offering lower rates. This is where shrewd customers can take advantage and get into the practice of insurance hopping every 2-3 years to look for better rates.
10- Drive Safe
Driving safely will save a lot of money on your insurance premiums , so avoid driving the wrong way. Insurance companies are not only able to record your driving history , but they also can also track your performance. They also can track your speed and other information to show how the driver drives. Whether he is a safe driver , a dangerous driver, or a reckless driver. This data then ends up affecting the insurance premium that is offered to you. Even if you hop insurance providers, your driving data will be available to all of the insurance providers.
It is therefore better to drive slow and safely, as this will help you get lower insurance premiums. If you feel that you have a risky or dangerous driving style then consider taking defensive driving classes, in order to reduce the risk of any accident. Data suggests that defensive driving classes can end up reducing insurance premiums by almost 10%.
The ways to reduce the car mentioned above can help you reduce your insurance, if followed correctly. Always consider your own circumstances first. Check your budget, see how much you can afford and how much time you have to follow the methods mentioned above. Some methods such as insurance hopping and looking for better deals, sound easier to read and write but are time consuming activities, therefore try to go for the easier steps at first such as changing your driving habits to drive safely.
See also : Car Insurance Cancellation 101