People buy insurance for safety, relief from worry, as well as being able to cover damage when necessary. Although, higher insurance costs might make people more frustrated and worried. Currently, car insurance premiums are rising countrywide. There are some causes that are unavoidable, but, there are some important factors for you to consider if you want to minimize your auto insurance cost.
How You Can Lower Your Car Insurance Premiums?
- Compare the insurance providers:
- Know about insurance costs before you buy a car:
You need to shop around to decide which insurance provider is best fit for you because the costs of car insurance vary from company to company. You can do this comparison by yourself or, you can take help from others. Sometimes there is a comparison report available at the insurance related department of the government of the state. Some car insurance providers sell their insurance via an insurance agency like Chapman Insurance Group and some sell directly to the clients. You should be mindful to not fall for the attractive speeches from the agents or words from the brochure. You must take some quotes from different companies and compare them yourself or seek the guidelines of a professional auto insurance agent.
The car insurance premium depends on several factors such as the type of car, the mileage driven by the car, the repair costs of the car, etc. Before you buy that car, you should have a clear idea about how much the car insurance will cost you considering these factors.
There are several types of discounts that car insurance companies can offer.
Upfront Payment Discount:
If possible, pay the insurance premium upfront in full. Every car insurance company offers discounts to the clients who pay the premium in full.
Discounts for updated features:
If you live in such an area where the crime rate is higher, you can definitely count on the premium for your car insurance to be higher. Car accidents also increase the car insurance costs. There are some car companies who provide updated features to reduce the risk of accidents. There are some features like automatic seat belts, GPS controls, biometric door locks, etc. which help reduce the risk of car theft. These features will help people get special discounts on premiums as per the policy of the insurance provider. Almost all car insurance policies offer special discounts for updated car features which reduces the risk values. There is an online database that could help you select the right car for you. You can visit the official website of Insurance Institute of Highway Safety, or IIHS, for this kind of information or consult an experienced agent.
Discounts for Lower mileage:
Car insurance premium is also dependent on the mileage driven by the car. The higher the mileage, the higher the premium. If you can keep the total mileage per year under control, you might enjoy the discounts on car insurance rates. Many insurance providers announce special discount offers for drivers who keep the driving mileage down. You may even enjoy a 5%-15% discount for lower mileage.
- Several Insurance Policies from the same company:
- Better Credit Score:
- Drive Safe:
If you buy several insurance policies such as Car Insurance, Homeowners Insurance etc. from the same insurance provider, you might get some discounts. But this does not necessarily happen all the time. You must be sure about the discount for multiple policies from the same company. Otherwise it’s better to check other insurance companies.
If you increase your deductibles, you might get a bigger discount on the premium. According to the report of III (Insurance Information Institute), increment of the deductible by $300 might get you a discount up to 30%. Obviously, this rate of discount on insurance rates regarding deductibles varies from state to state.
Poor credit card history is bad for your financial activities in many ways. If you want to have loan from the bank, the first thing the bank does, is check your credit card history. Similarly, the insurance provider also checks your credit score. The insurance providers consider a credit score as a “risk factor”. Poor credit scores cause higher car insurance premiums. But if you have a poor credit score, don’t be frustrated. There are several ways to improve your credit card history. After improving your credit score, buy the car insurance policy.
A car accident creates a gloomy and sometimes traumatic memory in our life. Whenever we remember it, we get sad. Not only does it have a huge affect on our emotions and sometimes physical health, it also has a huge impact on our financial health; meaning the rising car insurance costs. Accidents cause higher insurance rates. According to a study, car accidents can cause your insurance costs to rise up to 11% to 13%. If your driver’s license is new, you should take some extra classes to become an expert. This additional car driving training will help you get discounts from your insurance provider. To avoid accidents, you also need a better car. Buy a car that has additional features to help you avoid car accidents.