Buying car insurance is one of the most costly yearly expenses that you will have to pay. It can also be a pain, because if you are a careful driver who is safe on the roads then you may end up never needing to make a claim. However annoying it is, car insurance is a mandatory and necessary purchase for all drivers. Luckily, there are a few ways you can save yourself some money on insurance.
1. Research difference insurance firms.
There is often a great amount of difference between the cost of insurance premiums from one firm to the next. Indeed, companies can change their rates as they see fit and your current insurer may no longer provide the best deal. It is a good idea to look around as much as you can before committing to a deal.
2. Plan ahead before buying a car.
If you are about to get a new car, think about the effects on your auto insurance beforehand. A faster, newer, sportier model is going to be more expensive than a car that is ten years old.
3. Drive safely.
There is one sure way to make the cost of your insurance premiums hit the roof, and that is having accidents! Every time your dangerous driving causes problems for other road users you become more of a liability for the insurance firm, and they will charge you for it. Learn to become a safer driver if you want to lower your premiums.
4. Don’t let your children drive.
Young drivers under 21 are deemed to be a big risk by insurance firms, particularly males. If your children are desperate to drive when they are young then you might have to make them take out their own insurance.
5. Maintain good credit.
Insurance firms in certain states will often charge drivers with a bad credit score more money for their insurance, again because they are considered more of a risk. Paying all of your bills and credit cards on time will show them that you are responsible enough to qualify for reduced payments.
6. Increase deductible payments.
Raising the minimal amount that you will have to pay before the insurance company covers the remaining costs is a great way to lower the cost of your premiums. Just make sure that you commit to a reasonable figure that you will be able to pay in the event of an accident!
7. Buy what you need.
Insurance policies can often be modified with certain payments dropped. You may be able to lower of remove your liability or collision insurance, although you should fully research the implications this will have before doing so.
8. Don’t let your insurance lapse.
Renewing your policy before it expires will also show insurance companies that you are trustworthy. Even if you want to switch suppliers, you may find it difficult to get a deal with a new company if you have previously gone for periods of time without any insurance.
Although car insurance can be a frustrating expense, following these guidelines should help you keep the costs down.