Part of being a car owner is getting the right amount of protection. Since most states require you to have one, getting auto insurance is one thing you wouldn’t want to overlook.
It can get costly if you end up with a deal that will break the bank. The good news is that shopping for auto insurance coverage you can afford is possible. Here are a few tips to help you reduce your auto insurance costs without decreasing the amount of protection you need:
- Maintain a clean driving record
For the most part, reducing your insurance premiums starts with how safe a driver you are. Avoiding drunk and distracted driving and other moving violations reduces your risk profile and cuts your insurance costs. On the other hand, raking up too many traffic citations would mean paying more for coverage.
To make sure you are always safe on the road, consider honing your defensive driving skills. At this point, there is truth in the saying, “Better safe than sorry.”
- Opt for a smaller vehicle
Larger vehicles might be a status symbol to some, but apart from being gas-guzzlers, full-size cars are more expensive to insure. Unless your vehicle is a hybrid, you are better off driving a compact or midsize car. Not only does it save you in gas costs, but it also decreases your premiums by a significant amount.
- Choose the best rates
When shopping for auto insurance, you need to make sure you find the right one that fits your budget. The key is to get as many quotes from different providers as possible in your location. You can find the best car insurance rates in Toronto, New York, or just about anywhere if you do a little research.
Still, choosing auto insurance you can afford doesn’t mean settling for the cheapest one. Getting quality coverage would mean getting a policy from a reliable insurer. List down the major providers in your hometown, request quotes, and make comparisons and look for the one with the features you need.
- Build credit
It’s a little known fact that auto insurance providers require you to reach a certain credit score to access more affordable premiums. That’s because your capacity for responsibility is measured by how you manage your finances. If you want to pay lower premiums, it would be best to maintain a high credit score by writing off debts and keeping your credit balances low.
- Bundle up your policy
If you are married or related to someone who owns a car and lives in the same house as you, you can get a multi-vehicle discount of at least 10% from the same provider. This discount should cover liability, comprehensive coverage, and collision protection. Another strategy is to bundle up your auto insurance with another type of insurance from the same provider. To be sure, check with your insurer if such discounts apply.
- Avoid adding coverage you do not need
At times, your policy may include features and benefits that don’t have a big impact on your finances. As a matter of fact, you will realize that you don’t even need these features at all. You can actually lower premiums and save more money if you opt out of extended coverage options. Then again, some types of coverage can be essential in the near future such as a roadside assistance add-on. Take time to review your policy and check if there are features that can come in handy.
- Increase your deductibles
After a collision, your insurance will pay a portion for the repair while you pay for the rest out of pocket. This is what’s known as a deductible. Opting for a lower deductible would mean paying less, but it comes with a price. Since the insurer will shoulder a larger portion of the repair costs, you will be paying higher premiums to maintain your coverage.
It’s often a good idea to increase your deductibles if it means lowering your premiums. As long as you drive safely and avoid an accident as best you can, you can enjoy paying lower premiums each month.
- Talk to an expert
When it comes to auto insurance, it’s important to get detailed information and advice on picking a policy that won’t hurt your current finances. For this reason, consider talking to a financial advisor or an expert in auto insurance. They can help you find other discounts and secrets to paying less without compromising the protection you need. You can even leverage other cost-saving features and provisions in the fine print of your policy.
Car accidents happen all the time. As a motorist, it’s important to be always prepared for any eventuality. This doesn’t mean you have to pay more just to maintain protection. Follow the tips above and get the most of your auto insurance without having to burn through your wallet.
