Car insurance sucks! That monthly and/or annual payment really sucks but, having an accident without insurance is a whole other level of sucks. Insurance is the law and a necessary payment in many people’s life and for that reason let’s explore getting everything you need for less. All the tasty coverage with none of that inflated premium aftertaste.
1) Shop Around
Data show that many people simply renew their current policies without shopping around. The Internet makes it easy to compare prices from different companies, so why not take advantage of this? Plus, you’ll usually get a discount of 10% or more just for buying your policy through an advertised promotion.
2) Policy Type
Do you really need a comprehensive policy with all the extras? Going for a third-party Fire & Theft policy can reduce your premiums hugely and is definitely worth considering if your car is not an expensive model.
3) No Claims Discounts
Nearly all policies feature a discount that increases for every year you do not make a claim. Also look at insurers offering a “no claims bonus for life” feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line.
4) Increase Your Excess
The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums.
5) Get a Security System
Fitting your vehicle with an alarm, immobilizer, or other security devices can lead to premium reductions. Parking your car off of the street, for example on a driveway or in a garage, will also mean a cheaper policy.
6) Pay Annually
Many insurers charge you interest for the privilege of paying in monthly installments. Pay annually if you can afford it to avoid this or look for one of the companies who do not charge extra for monthly payment.
7) Lower Your Mileage
The more mileage you run up every year, the more your insurance will cost. Even if you can’t reduce your mileage, make sure you’re not overestimating how much you actually do drive, and give your insurer an accurate figure.
8) Limit the Amount of Drivers
The more drivers you have on your policy, the more it will cost. Reduce the number of people insured to drive your car to the minimum possible and try to get the policy in the name of a driver with the lowest risk profile. For example, if a car is driven by both a man and a woman, insuring it in the woman’s name will often result in a cheaper quote.
9) Low Risk Candidate
Insurance companies are interested in managing risk and they offer drivers who are less likely to get into wrecks a lower insurance quote. When negotiating your policy make sure to highlight all the reasons why you are a low risk candidate. Insurance companies like boring people, so this is not the time to talk about your crazy spring break in Cancun.
10) Buy a Safe Vehicle
The National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety together collect information on safety related aspects of different vehicles. Buy an automobile that is officially designated as “safe” for lower insurance rates.
11) A Good Credit Score
As a risk management entity, insurance companies are also worried about getting paid on time. If you can show yourself to be credit worthy, there is less risk of you not making your payments on time, thus warranting a lower rate.
12) Practice Financial Wisdom
The way in which you structure and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer. By taking steps to lower their risk, you receive a lower insurance quote and policy. Opt-in for automatic payment deductions from your bank account or your credit card to avoid getting charged for mail payments and ensure payments are on time.
It was not too long ago when contracts were made on a handshake and a promise and individuals were not particularly concerned with things like insurance because they relied upon the goodwill of their neighbor to compensate them for wrongful damage.
Buying auto insurance today requires as much dexterity as buying the automobile itself. It is important to know the factors that an auto insurance company considers when offering quotes. This will allow you, as the consumer, to know what steps you need to take in order to qualify for a lower quote. Please call us for more tips, help, and the lowest possible rates.