Buying car insurance is mandatory in multiple states. It is great that a policy can provide financial protection in case of mishappenings. However, there are a lot of people who are still hesitant to buy car insurance. People overlook the importance of insurance policies due to their high rates. Due to our litigious nature and an increase in the price of vehicles, car insurance companies are increasing rates of their policies. Still, there are a few things that you can do to save money on car insurance. Here, in this article, we will guide you in doing so in the simplest manner.
6 Ways to Save Money on Car Insurance!
#1: Multiple Cars Or Drivers Could Be Your Saviour
If you inquire about insurance of a single car, you might end up with insurance quotes at a high rate. On the other hand, inquiring about insurance for multiple vehicles will lead to much lower rates. They want the business so they will offer you a deal that will bring more profits for them while keeping lower insurance rates.
You can ask your insurance agent about it. Generally, drivers live around the same place and are related to each other by marriage or blood. So they can ask for bulk insurance rates. In fact, two friends can even obtain a discount. However, the condition is that they must jointly own the car.
In case, one of your drivers is still a teenager then the insurance companies charge a higher amount. However, your child’s grades can be your big savior. If he or she ranks amongst the top 20% of their class then you can take advantage of good student discount coverage. It only works until your child turns 25. Depending on the insurance companies, these discounts range between 1% and 39%. So make sure to show your child’s good grades proof to your insurance agent.
Read Also: What Is The Role of Car Insurance in a Car Accident?
#2: Mindful Living Is The Key
Yes, you have to drive consciously and safely. In today’s age, there are a lot of in-car distractions. It could be your mobile phone, friends, family, or anyone else. So these are some of the key reasons for car accidents. The time you become more mindful, it will save you from violating traffic rules. So you can avoid events that raise insurance rates. Insurance companies offer safe driver discounts between 10% and 23% after evaluating your driving record. In case you are new to this scenario, driving violations counts as points. The more you get these points, the higher is premium.
#3: Opt For A Defensive Driving Course
Insurance companies even provide discounts to those who pass the defensive driving courses. This also helps drivers in reducing points on their licenses as they have completed the course that prevents accidents. Before enrolling for such a course, you must consult the insurance company. After all, you are doing it to save money on insurance. You have to register for an accredited course. In the United States, every state has its own rules for defensive driving courses.
Also read: How Much Car Insurance Do You Need?
#4: Look For Better Premiums
If you already own a car insurance policy that is ready for renewal and premium rates are going up remarkably then shop more. Yes, you need to consider shopping insurance from other companies and obtain quotes from different companies. Also, it’s important to keep a check on competing insurance companies every year or once in six months. Some of the best car insurance companies are State Farm, Geico, etc.
Remember, you don’t have to always look for the cheapest car insurance policies. Cheapest doesn’t mean you are going to get the best terms and conditions. You must also check the company’s creditworthiness. After all, the insurance policy is of no use if the company doesn’t provide the best benefits.
Here is a tip for you. Look for websites that rate the financial strength of insurance or car insurance companies. It will give you an idea that whether the company is really good for you or not. For example, insure.com provides ratings to insurance companies based on their research that involves both standard and poor’s.
#5: Make Use Of Mass Transit
When you go for registration for your car insurance, the company is going to do a bit of research before approving your policy. It is generally in the form of a questionnaire. There might be a question on the number of miles you drive every year. If you are one of those who travel for hours before reaching your destination then it will be an issue for you. The insurance premiums will be high as you are at higher risk. If it’s manageable for you then choose mass transit to shorten the number of miles. You can ask your insurance company beforehand about its number of miles threshold. So you can plan on driving accordingly.
#6: Buy Small Cars
People are moving more and more towards living a luxurious life. That’s why even though a single person travels, he or she owns a huge SUV for the same. Although, the idea of driving an SUV to the workplace sounds exciting but insuring the same is not exciting. Insurance companies will offer you expensive policies for insuring large cars. Some insurers may offer a discount if you are driving with an alternative fuel vehicle. To contribute a bit in saving our environment, buy small cars, and travel in groups. In this way, you are helping yourself and the environment at the same time.
Also read: Is an accident covered in term insurance? [Ultimate Guide]
Buying car insurance is a great idea and if you can do it without compromising on your budget then it’s even better. Here, we have shortlisted a few ideas that you can use to save money on car insurance. You shouldn’t compromise on insurance benefits just for the sake of reducing insurance policy rates. So make sure you don’t miss out on this point while searching for the best car insurance policy. We know these things are definitely going to help you out. In case, you want us to add more points and you want to share some ideas then feel free to contact us. We welcome great ideas as they help us improve our content in the future.