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Unexpected Ways to Save on Car Insurance
Car insurance is one of life’s necessities. But there is no reason to pay more than necessary. It’s never a bad idea to talk to your insurer about the little details that can make your coverage cheaper, without sacrificing the protection you need while traveling.
1. Install an alarm system
If your car doesn’t already have an anti-theft device, adding it can make your insurance more affordable. The logic is pretty obvious: less risk of your car being stolen equals less risk of having to make a claim under your policy.
2. Remove high-risk drivers from your policy
Everyone needs car insurance, but insurers don’t see everyone the same way. Newer drivers and those with poor accident histories are generally more expensive to insure. Consider your options to give them their own insurance or ask for separate insurance, or ask your insurer how to reduce the risk and premium rate. For example, enrolling in a driving course can be helpful.
3. Choose a less desirable car model
Flashy vehicles can make others envious. They are also a target for people. Insurers know this, which is why it is more expensive to insure models that are often stolen. Older cars can also be cheaper to insure, as they may cost less to repair. New-generation cars have more high-tech components, which are more difficult and expensive to repair, resulting in a higher cost of claims.
4. Bundle with other insurance
Insurers and brokers want your business as much as possible. So you can get a better rate if you buy a package that includes multiple policies. It’s not uncommon for people to combine home and auto insurance, for example, for less money than the same coverage might cost different insurers.
5. Limit your driving time
Less time on the road means a reduced risk of accidents. So, if you only use your car occasionally, let your insurer know. If the price difference is large enough, you may want to consider committing to a public transportation routine a few days a week. Also tell the company if your vehicle is seasonal, for example, an RV or a motorcycle that you only use in the summer. This can expand your options for cheaper coverage.
6. Use your connections
Professional and alumni associations can often be gateways to cheaper car insurance. Check to see if your insurer offers special rates for certain groups. It can simply be another way to make your professional dues or the money you spent on tuition useful.
7. Ask for special discounts
These are just a few ideas. The truth is that your insurer can save you unlimited means, although they don’t. Talk to the company to see if there are other ways to demonstrate that you are low risk and deserve affordable coverage.
Shop for the latest
The first step in your search is to compare car insurance quotes on the insurance service. Find out what’s out there and find new ways to save money on your commute.
Why do I pay more for my car insurance?
The cost of your car insurance can be influenced by several factors. Here are some common reasons why you might pay more for your car insurance:
- Driving History: A driving history with previous accidents, violations, or claims can lead to increased insurance premiums.
- Age and Driving Experience: Young and novice drivers often have higher premiums due to the statistically higher risk of accidents in this category.
- Type of Vehicle: The cost of insurance can vary depending on the type of vehicle you drive. Sports or luxury cars usually have higher premiums.
- Localization: Where you live can impact the cost of insurance. Areas with a high crime rate or a higher frequency of accidents may result in higher premiums.
- Deductible and Coverage: Opting for more extensive coverage or a lower deductible can result in higher premiums. Conversely, a higher deductible can reduce premiums.
- Credit Score: In some areas, a driver’s credit score can influence the cost of insurance.
- Annual mileage: If you travel long distances each year, it can increase the cost of insurance.
- Civil status: Marital status may also be taken into account by some insurance companies when pricing.
- Options and Additions to the Agreement: Adding additional options or coverages to your policy may result in additional costs.
- Previous claims: If you’ve made insurance claims in the past, this can lead to an increase in premiums.
If you see a sudden increase in your car insurance premiums, it may be worth talking to your insurer to understand the specific reasons for the increase and to explore possible options to reduce costs.
