Car insurance isn’t a one-size-fits-all product. The price you pay for coverage is a function of several factors, including your driving record, the value of your car, and the amount of coverage you need.
You can reduce your premium by shopping around for better rates and taking advantage of discounts.
Here are some tips on how to save on car insurance:
Compare Quotes
When shopping for car insurance, getting swept up in the excitement of getting a new car is easy. But it’s important to ensure you’re not paying too much for coverage. The easiest way to do this is by comparing quotes from different insurance companies. When you do this, ensure each quote is for the same type of coverage, such as liability or collision. Also, ensure that you include at least three different companies in your search to ensure that you get competitive rates from multiple providers.
Look At The Fine Print
While comparing quotes is important, don’t just look at the monthly payment and sign on the dotted line without reading all the details. You might find that some quotes come with higher deductibles or lower limits than others or both! It’s important to understand what these terms mean to know the level of protection you’re getting from your policy.
Negotiate A Lower Rate
If you’re a good driver and haven’t had an accident or violation in years, ask your insurance company to match the lowest rate they have available in your area. If they don’t budge, shop around until you find one that will give you a better price.
Boost Your Deductible
The deductible is the sum of money you must pay before your insurance begins to pay for any harm or property damage brought on by a motor vehicle accident. You’ll pay less in premiums but more out-of-pocket expenses if an accident occurs while you’re driving if your deductible is larger. For example, if your car gets into an accident and causes $5,000 worth of damage, but your deductible is $500, you’ll have to pay that out-of-pocket. After paying this amount up front, your insurance company will reimburse you for the rest so long as they don’t deem it “faulty driving” or something similar that falls under their exclusions list.
Pay Upfront
Many insurers offer a discount if you pay your premium in full or upfront. This is typically between 5 and 10 percent off your policy’s total cost, which can add up to hundreds of dollars over a year. The catch is that many people don’t have the cash to make such large payments all at once, so they’ll need to set up automatic payments through their bank, credit card, or other sources.
Manage Driving Habits With Tracking Devices Or Apps
If you’re looking for an even bigger discount on your car insurance rates, consider installing a GPS tracker that will monitor your driving habits and then report them back to your insurer. These devices can be installed by professionals or purchased online; either way, they’re relatively easy to set up and shouldn’t cost more than $100 or so, depending on features. Once you’ve got one installed, it will track things like how fast you’re going and how far apart you drive between stops, information that will help give insurers a better picture of how safe their customers are.
Conclusion
Always get multiple quotes before signing a policy to ensure you’re getting the best deal possible. You can do this on your own or use an online broker to help you get started. Be sure to ask about coverages that are right for your situation so that you purchase a policy that will match your unique needs.