In an economic crisis, everybody is looking for ways to cut costs and save more money. Automobile insurance is an area where you can save money.
Here are tips on how you can save money on your car insurance.
- Choose higher deductibles. Simply defined, a deductible is the amount that you pay from your own pocket for automobile parts and services before your insurance company pays anything. Raising your out-of-pocket expenses will significantly lower the insurance premiums that you pay to your insurance company.
- Skip the collision and comprehensive coverage for older cars. Most people cannot bear the thought of parting with their old car, but the older the car, the more expensive its collision and comprehensive coverage will be. Thus, if your car is old, it is advisable that you drop the collision and comprehensive coverage since you would probably have to replace your car with a new one should it ever be involved in a traffic collision.
- Do comparison shopping of insurance. All companies that provide automobile insurance do not charge the same rate. So it is wise to do some comparison shopping before buying car insurance. The best place to do comparison shopping is online. Many insurance companies and insurance websites provide instant free access to insurance quotes. Get at least five insurance quotes and compare them. Look at differences in costs, coverage, premiums and deductibles. Choose one that fits your needs as a motorist.
- Always drive safely. Insurance companies look at your driving history when computing the monthly premiums that you have to pay. It goes without saying that getting involved in frequent car accidents will cause your premiums to rise, or your insurance company to cancel your policy. Similarly, avoid getting traffic violation tickets. They will only push your monthly premiums up. Keep a clean driving record and you will save on car insurance.
- Keep a good credit score. Insurance companies sometimes use your credit score to compute your monthly premiums. They use your credit score to determine your risk level. Someone who borrows money and pays it on time will have a lower monthly premium on car insurance than someone who borrows money and is delinquent in paying.
- Shop for insurance before buying a new car. Different car models and brands have various market values. If your new car is expensive to repair and can be a target to be stolen, then prepare to pay higher car insurance premiums.
- Ask for discounts. If your house is insured under the same company, chances are you can get a discount on your car insurance. Discounts are also given to people who have more than one car insured under the same company so take advantage of this offer. You can also get discounts if you take a driving training course or do carpools. Paying six months worth of premiums at one time can also lower your car insurance costs. Discounts are also given to car owners that have anti-theft devices installed.