Monday, June 12, 2023
By CarKhabri Team
Saving Money on Car Insurance: Practical Tips and Strategies
Having car insurance is a must if you are a car owner. But if you do a minimum wage job or can’t afford such high insurance premiums, you might give it a second thought. You should not since there are ways in which you can save money on your car insurance.
Some of the most common ways will be to look for multiple insurers and pick the most affordable one or bundle your different insurances. But they don’t help you save a lot. And to save money, people often go for low-cost quotes from unreliable companies.
That is not the wisest decision to make; rather, look for actionable tips that can help you save money from reputable companies as well. In this blog, you will find ten tips. So keep reading.
Tips And Tricks For Saving Thousands On Your Car Insurance
Some basic tips include buying smaller and safer cars, keeping low miles, and having a good driving record. If you can implement them, you can bag some discounts.
However, if they are not currently possible, you can still implement the ten tips mentioned below.
Claim Multi-car Discount : If you own more than one car, insuring them with the same company can save you bucks as you get a lower cost per car. This way, you can claim multi-car discounts on the bulk rates. However, to qualify for this discount, drivers must be related to you, either by blood or marriage or jointly own the cars and reside at the same location. If one of the drivers is a teen, the insurance price will be more. But you can also save on that if they have good grades. Then they’ll be eligible to claim a good student discount.
Take A Defensive Driving Course: You can avail of additional discounts on your auto insurance as few companies offer discounts to drivers who complete an advanced defensive driving course. However, before enrolling, check the course cost and if the effort needed is worth the amount you save on auto insurance. Check for accredited courses, as each state has its own set of rules.
Go For Pay-As-You-Drive Insurance: If you are a safe, low-mileage driver, this is a great policy to explore. In this insurance policy, you pay for coverage on a per-mile basis. So it is focused on the actual distance you drive.
So if you rarely drive or drive for very short distances, hence have low annual mileage, this insurance gives you the flexibility to do cost cutting.
Increase Deductibles: A deductible is an amount you pay out of your pocket before your auto insurance covers the bill of an unfortunate event or other claims. If your deductibles are high, ranging between $250 and $1000, it subsequently reduces the premium amount. Consult with your agent and find out how increasing your deductibles can reflect on your premium. You should raise your deductibles only if it doesn’t raise your premium amount.
Have A Good Credit Score: Insurance companies provide lower premiums to credit card holders with a good score, as it shows financial responsibility. Some companies offer discounts for good credit scores, which reduces the overall premium cost.
Another benefit of having a good credit score is it avails you a range of insurer options, and you can choose your best fit.
Review And Revise Your Coverage Policies: It is always good to have comprehensive coverage, but if you are driving a very low-risk car ( a car you can barely drive), you can consider dropping some additional policies.
If it is a significantly old car, chances are it has had its fair share of crashes, and based on that; your insurance company can ask you to add a $500 collision coverage. Now it makes no sense to pay insurance that is higher than your car’s resale value.
Install Anti-theft Mechanisms In Your Car: Having safety mechanisms pre-stalled in your cars can often help you get some additional discounts on your insurance policy. If you install an anti-theft device, you might be able to save more than 20% on your premiums. Car alarms and LoJacks are the two most common types of devices that you can opt for. However, consult your policy agent as they can guide you better about what kind of device installations will make you eligible for the discounts. On that note, also check if the cost of adding the device is giving you a significant discount or not.
Explore State Insurance Assistance Program: Depending on your income and your state, you can look for a state insurance assistance program. Under this program, if your car is valued under a certain amount and you meet the other criteria, you get coverage at very cheap prices. For example, two states offering such policies would be California and New Jersey. Their insurance programs are California’s Low-Cost Automobile Insurance Program (CLCA) and Special Automobile Insurance Policy (SAIP) respectively.
Ask For Special Programs: Many US-based insurance companies offer special programs like “usage based insurance (UBI) programs, where the company uses telematic devices or smartphone apps to track your driving behavior and charges you based on that. So, if you have safe driving habits, such as you avoid hard braking and driving during low-risk hours, you can be eligible for discounts. The UBI program monitors your speed, acceleration, braking habits, mileage, and sometimes even the time of day you drive.
Look For Basic Discounts: If you are a student, then ask your agent about a student discount. This discount is generally provided to students on how to score certain grades and above. The benchmark can be different for different companies and states. A good student car discount lasts till 25 years of age. This is typically available for high school or college students.In fact, some companies may offer more discounts on auto insurance if you have other insurance like homeowners insurance with them. You can also look for affinity group discounts. In which the insurance companies have partnerships with specific organizations and employers.
Final Thoughts: Always start your insurance buying process by understanding your insurance needs and weighing all the available options. With the internet, it is now way easier to get insurance quotes. For example, if you are curious to know what is the cheapest minimum car insurance in Illinois, you can do that online. So do that, and then implement the knowledge you gathered from here to curate the optimal car insurance policy.