I know you love your car, but I bet you don’t enjoy paying for car insurance especially with the cost of it rising by the minute. However, no matter how expensive it might be, the law requires you to have auto insurance and there is no avoiding that.
But wait a minute? Just because the law requires you to pay doesn’t mean the auto insurance has to cost you a fortune to get the coverage that you need. Yes, it’s true that apart from the cost you will pay, insurance companies also consider other factors. These usually include your age, driving history, your living area and level of coverage.
Nonetheless, you still can save some money on your auto- insurance and still get quality coverage by just following these 6 simple tactics.
1. Compare Insurance Companies
Comparing companies might seem like an obvious starting point to many car owners but sadly it’s not. Every insurance company is different and their premiums are known to vary, that’s why it’s essential you compare their quotes. With easy access to the internet, you get to search for dozen of insurance companies and get to compare the multiple quotes in minutes.
Furthermore, if you have held your auto insurance policy for several years, it wise you also review it. This is to ensure you are not paying too much on your coverage yet there are other companies with better offers. Remember that, switching insurance carries could save you hundreds of dollars every year but also keep in mind, the cheapest option is not always the best one.
2. Combine Your Policies
It’s no secret that most car insurance companies give discounts to clients that have more than one policy with them. Therefore, if you have multiple insurance policies such as life and homeowner’s insurance policy with different companies, you can opt to combine them with one carrier.
In some cases, having all your policies at one company can save you between 10% and 20% on all your coverage. However, before you take the final step of combining the policies in one company, you should ensure you get the best option for all of them. Note that, for a great place to start, check out the guide to renters insurance and see how to combine other insurance policies with your car insurance.
3. Take Up a Defensive Driving Course
A defensive driving course is another simple tactic to help you save money on your car insurance coverage. If you take the optional course, most insurance providers are willing to give you a monthly discount if you show proof of the completed course. The good news is that this is a quick and simple way to save you some hundred dollars per year.
In addition, these classes will help you to be alert on the road and help you avoid any incidents or accidents. By learning how to react in certain high-risk situations, you get to save more money when you prevent any damage to your car or yourself. Is this not a win-win situation?
4. Pay Your Premium in One Go
Although it is possible to pay your car insurance on a monthly, quarterly or semiannually basis, it’s convenient to pay in one go. For example, if you are used to paying on a monthly basis and you are charged a 5 % processing fee, you get to save $ 60 per year. That’s great, right? Nonetheless, it’s important to read all the terms and conditions of each policy before deciding which ones work best for you.
5. Maintain a Good Credit Score
What most people don’t know is that insurance companies use as much information as they can get to price auto insurance policies. That means if you have some issues with your credit report, this can negatively influence your premiums. Therefore, if it has to do with paying the bills, ensure you pay them on time and work on lowering your credit card debt. Additionally, another way to be sure you’re getting the good credit you deserve, always check your credit record frequently.
6. Consider the Car You are Driving
I know you love your car, but are you forced to pay more insurance because of its make or model? When it comes to the make, the insurance company considers if the car is manufactured in the country of a foreign one. If it is a foreign car, you are likely to pay more on your premium because of the accessibility of body parts and body shops. When it comes to model, the fancier your car is the more expensive it is to insure. Sure, the fancy car is great but are you willing to pay extra of thousands in insurance for it?
Saving money on your car insurance can be simple if you are willing to change some ways. Just apply the above tactics and be ready to have some extra money in your wallet.