9 Simple Ways To Lower Your Auto Insurance Costs & Save Some Money

By Chika

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Last Updated: December 2, 2021

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Paying for auto insurance may appear to be an unwanted expenditure at times, but it serves a useful purpose. It protects you against financial loss incurred as a result of auto theft, injuries, or property damage caused by a car accident, or other unforeseen occurrences.

Albeit, policyholders shouldn't have to spend a fortune to have reliable coverage. There are a plethora of auto insurance companies to choose from. All it takes is diligence and patience to rummage through the multiple options to find the coverage that suits you. Here are some tips for finding low-cost vehicle insurance that suits your requirements.

 

9 Tips to Lower Your Auto Insurance

1. Maintain a good driving record.

Having a good driving record is a critical step to lowering your auto insurance costs.

A driving record without blemish indicates to the insurance company that you are a low-risk driver and would not cost them money in the form of claims. Long-term drivers with the finest records pay the lowest rates.

Collisions and driving convictions that are your fault raise your insurance costs dramatically, and they stay on your record for years.

2. Choose the right car.

If you want affordable vehicle insurance, then you have to keep in mind the model and make of your car.

Logically, a more expensive car or a newer model would attract more insurance costs than a cheaper or older version. However, it doesn't end there. If the car is more susceptible to theft, you'll pay higher insurance costs.

Also, vintage cars and rarer autos would attract higher than average insurance costs due to their value and market price. 

3. Compare quotes.

If you want to get the best insurance prices, you'll need to search around.

Consider collecting vehicle insurance estimates from both national and smaller insurers, since you never know where the finest bargains could be hidden. A faster and more efficient way is using auto insurance comparison websites.

Getting quotes online allows you to compare auto insurance coverage among a large number of insurers. Alternatively, you can liaise with an insurance agent to discuss your options. Getting a lower quotation helps you to save money in the long term.

4. Recognize the metrics that influence your auto insurance cost.

Factors that influence your auto insurance costs are not limited to your driving record and credit history.

Insurers charge rates based on the risk they are incurring by insuring you. Other factors such as your zip code, age and marital status, and even the car's make and model can also influence the risk assessment carried out by insurance companies. 

For example, some areas have a higher rate of car theft and accidents. As such, if you reside in such an area, expect to pay a slightly higher premium for your auto insurance, regardless of your credit or driving history.

Having an idea of factors that affect the pricing of your auto insurance enables you to plan accordingly. On the flip side, it also shows what steps you have to take to reduce your auto insurance premiums. 

5. Increase your deductibles

A deductible is the amount of money you pay to cover the expense of a vehicle insurance claim.

For instance, if your deductible is $1,000, you will be responsible for the first $1,000 in covered services. After that, you only have to pay a co-payment or co-insurance for services that are covered.

You might be able to minimize your monthly premium by increasing your deductible. Nonetheless, consider your complete financial circumstances while picking a deductible. If it's too pricey, you could have financial difficulties if you ever need to submit a claim.

6. Pay premiums annually

Most insurers give discounts if you pay your premium in lump sums annually rather than monthly.

If you pay your premiums upfront for the year or six months, you may get a small cut of the savings from administrative fees.

7. Drop optional coverages (if necessary)

You may consider dropping optional coverages in your auto insurance policy if it is unnecessary.

For example, if you have an old car that isn't worth much or isn't worth repairing, you can forgo collision coverage. This is because you may be paying more than your car's value in insurance costs.

For example, it makes no sense paying a $1,000 deductible to repair a car worth only $500. Rather, you can use the funds to buy a new vehicle. 

You can also save money by sidestepping comprehensive coverage on your vehicle. A comprehensive auto insurance provides the widest cover against fire, theft, and other damages caused to your vehicle.

It also covers death, bodily injury, and damages to the vehicle or property of third parties caused by the insured vehicle. If you do not use your car often or stay in a relatively safe area, you could go for lower auto insurance coverage. 

8. Claim your discount.

Some insurers provide discounts for policyholders based on certain prerequisites. Installation of anti-theft systems, driving history, policy ownership are some factors that could make you eligible for a discount.

If you are a military personnel or veteran, student, or have multiple vehicles insured with the same company, you also qualify for a discount. Ascertain any discount that you may be eligible for from your insurance company or when comparing quotes. 

9. Consider third-party assessments.

To get the best auto insurance deals, you have to first conduct some research.

However, if you are incapable of conducting this process yourself, you can always go for third-party assessments. The advantage of this is that assessments from third-party assessors tend to be more holistic than personal assessments.

While individual evaluations may focus on price alone, third party assessments look at other factors such as customer services, prompt payment of claims, etc. It gives you a wider variety of options to look for when choosing an auto insurance company

 

Key Takeaway

Getting auto insurance is necessary as it protects you from losses or other liabilities you could incur by virtue of owning or using a car. However, you do not have to break the bank to ensure that your car is insured.

Using the variety of tactics outlined in this article you can reduce your auto insurance costs. 

Photo by Dhiva Krishna on Unsplash

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