Insuring your car is a crucial step that every car owner should take to ensure that it is protected from potential risks. It covers the risks involved in the event of an accident and gives you peace of mind. Although the need to insure a car has become a basic requirement today, the high costs involved make it hard for many.
Analysts and industry experts attribute the uptick in insurance costs to the increased prices of cars and the demand for insurance services. To help you bring down the insurance bill, this guide will walk you through several ways of lowering your car insurance premium.
How to Lower the Cost of Your Car Insurance
1. Look into competing insurance providers
Every car owner will agree that watching out for the various options available in the market is an excellent way to save money. This is also the case when it comes to seeking insurance coverage. Compare insurers side by side to find the best deal and value. It will not only save you money but also help you get a better package at an affordable cost.
Consult your friends and colleagues to find out what types of cover they use and the costs they incurred. While at it, get insights on insurance options and take recommendations from experts. Remember to consider convenience when finding the cheapest package for your car.
2. Keep a clean credit history
The majority of insurance providers use customers' credit records to determine auto insurance costs. So people with good credit scores tend to have fewer insurance claims than those with low credit scores.
As a car owner, having a good credit score helps in obtaining low-cost insurance services. Therefore, you should aim for a positive credit score by avoiding unnecessary credit services and always fulfilling your credit duties on or before it’s due.
3. Take up higher deductibles
In case an event occurs, requiring your insurer to provide financial cover, such as car repairs following an accident, deductibles will require you to carry part of the financial burden.
Insurance companies often provide much cheaper packages to customers who are willing to take up these higher deductibles. However, if you believe that your car is exposed to higher risks, taking up higher deductibles is not the way to go. Higher deductibles will reduce car insurance costs, but they also entail extra care and maintenance of your car.
4. Always seek insurance discounts
Insurance providers offer discounts to their customers based on several criteria. Being the case, you should be keen on which rebate your provider offers.
Discounts are often based on meeting specific requirements such as customer loyalty and accident-free periods or conditions like multi-vehicle pack insurance and clean records. If you meet such criteria, you can talk to your provider to offer you a lower-cost package for your rides.
5. Pay for your insurance package at once
More often than not, insurance companies offer different plans through which you can pay for your insurance. In instances where they allow you to pay in several instalments of lower amounts, the interest incurred will likely push the eventual total amount paid in premiums much higher than what one would have paid at once. If you have the financial ability to dispose of the payment at an instance, take up the option to do so!
6. Appropriately value your car
The value of the car during an insurance assessment primarily determines the premium amount. A higher estimated value will result in higher insurance premiums, while a lower value will mean lower insurance premiums.
Take time to work out an appropriate estimated value to avoid excessive premiums associated with overvaluing. Note that while a much lower value will result in lower premiums, you should never undervalue your car.
7. Purchase a car that is safe on the road
Car models pack varying features, and some of these features determine the level of safety that a car offers. Airbags, automatic detection of a possible collision, and similar features help prevent accidents.
Insurance providers are well aware of these features, which are factors in creating your insurance package. To maintain a lower insurance bill, seek a car that offers you these safety features.
8. Maintain low car mileage
Your insurance provider will be keen to know your car’s mileage as it is used to tailor a package for you. If your vehicle has higher mileage, it means that the risk of a claim for your car is much higher than in a lower mileage car due to its age and years spent on the road.
An insurer will likely offer a costly package to cover your car in such a case. Therefore, consider taking alternatives such as carpools and public transport where possible to reduce your mileage and consequent auto insurance bill.
9. Take up multi-package insurance
Most insurance providers offer insurance services for more than just cars. They provide other insurance services, such as home insurance. Coupling car insurance into a package consisting of a lower risk insurance item such home insurance will cut down the overall amount you will pay for the premiums.
10. Try out usage-based insurance
If you are a low-mileage car owner, the usage-based insurance coverage might just be the package for you! Your insurance provider will charge you a fixed low amount with an additional monthly charge for the distance covered. Also called pay-as-you-drive insurance, this package costs less than the regular yearly package.
Wrap Up
Owning a car shouldn't be a burden, and neither should be the cost of insurance. With the above tips, you can effectively bring down the already-high auto insurance costs.
For more car insurance advice, don’t hesitate to visit our blog!