Auto insurance is a necessity for every driver, but the cost of premiums can sometimes feel overwhelming. There are practical steps you can take to reduce your auto insurance premium without compromising on coverage. Simple adjustments and smart choices can help you save money while ensuring you’re well-protected on the road. This guide explores effective ways to keep your car insurance premium down.
All Auto insurance premiums and costs are based on statistics. These statistics involve analyzing accident rates and theft rates for the different makes and models of automobiles, under differing circumstances. It is for this reason that auto insurance is significantly more expensive for teenagers than it is for adults. But there are many factors that determine the cost of your auto insurance premium. Lets take a look at the main contributing factors.
1. Deductible
Having a low or zero deductible on your auto insurance will significantly increase the cost of the policy. This is of course a tradeoff, because you are gambling on the fact that you won’t need to make a claim.
You can pay up to 10% less on your annual premiums buy increasing the deductible. But a word of warning, if the time arrives to make a claim then you will be digging deeper into your pockets to pay for the larger deductible.
2. Crime Rate
If you are living in an area that statistically has high theft rates for your make and model of vehicle, then you will pay a higher premium. This is because your car has a much higher likelihood of being stolen, vandalized, or involved in an accident. There is not much you can do about this, you shouldn’t move location just to cut your auto insurance costs.
Don’t make the mistake of asking one of your family who live in the rural if you can use their address for your auto insurance. If the insurance company discovers this, you may be in trouble when its time to make a claim.
3. Garage Parking
The majority of auto insurance companies will give you to a slight premium reduction because cars parked in a garage are less likely to be stolen, vandalized, or damaged.
4. Mileage
Some companies have a low milage discount if you drive less than a certain number of miles in a year. This is often difficult to become eligible for because you will need to limit your driving in order to qualify.
5. Anti-theft Alarms
Most auto insurance companies offer policy discounts if your car is equipped with a safety device or anti-theft device. Shop around to find the cheapest auto insurance available. Get a quote from every reputable auto insurance company in your town or city. Most reputable insurance companies are on the internet and its easy to get online quotes.
6. Insurance Consolidation
Most insurance companies will give you significant discounts if you have all your insurance policies with the same company.
7. Driving Courses
Most companies are now reducing the policy for people who take a driver education course. This mainly applies to new drivers. Insurance companies like to know that you are driver educated and therefore statistically have less liklihood of an accident.
8. Being Smart Helps
Many car insurance companies are now offering discounts for higher than average grade students.
9. No Claim Bonus
Most insurance companies will reduce the premium every year if you don’t make a claim. Every year your premium will reduce if you do not have an accident.
10. Sports Cars Pay The Price
If you have a high performance sports car then you better dig deep. Sports cars and up market luxurious cars are the most expense to insure. Many times the cost can be double or more than a standard family car.
So finally, to save on your auto insurance premium costs its a matter of keeping the above factors at a level that are in your favor.