Tough economic times faced by many car owners make them ask, “What is the cheapest car insurance in town?” This question is legitimate because saving on your insurance costs is ideal during this economic meltdown. However, many of them never realize that knowing how to get the cheapest insurance is also critical. The reason is that even the most inexpensive car insurer considers several factors before offering you lower rates.
This post shares the ten commandments that will make you a safe and cheaper bet for vehicle insurers. Keep reading to learn how to save that extra dollar on your next auto insurance cover.
1. Insure Several Cars or Drivers
You can save on your insurance costs by insuring several drivers or cars simultaneously with the same insurer to enjoy bulk rate discounts. The logic working here is the simple laws of economies of scale.
If you want to insure several drivers, they must be blood relatives or related by marriage. They must also live in the same place. So, ask your insurance company first to see if you qualify for this.
2. Carefully Assess Your Needs
This commandment might sound too obvious, but it’s true. Insurance is not a fashion tool or decoration on your car. Don’t go for a policy with add-ons you don’t need. Assess your needs and then choose a policy that has everything you need.
3. Secure Your Car
You also need to improve your car’s security to save some cash on insurance. Adding security gadgets like car alarms and immobilizers secure your car. Thus, insurers consider it a safer bet that attracts lower rates. However, assess if the cost of fitting those gadgets is higher or lower than your expected savings before getting them.
4. Drive Safely
Are you still asking, “What is the cheapest car insurance around me, and how can I get it?” If you are, the answer is: drive safely. All safe drivers are cheaper and safer assets for insurers. Being a safe driver means you are least likely to cause avoidable and costly accidents. Therefore, avoid all possible pitfalls that could flag you as a high-risk driver. For example, avoid traffic tickets, don’t drink and drive, and maintain a good credit score.
5. Try Yearly Payments
Have you ever noticed that all lump-sum payments are usually cheaper across all industries? For example, if you take a monthly subscription of $10, you will part with $120 after a year. But if you pay annually, you may end up paying as low as $100. Yes, the math is that simple. So, always go for annual payments to enjoy generous discounts.
6. Get the Right Car for Your Travel Needs
The type of car you drive also determines how much you will pay in insurance premiums. Cars with smaller engines are cheaper to insure than guzzlers. So, use a car that meets your commuting needs. If a smaller vehicle can serve you better, go for it. Just ensure that you are not straining to pay your insurance premiums.
7. Take a Defensive Driver’s Course
You can also enjoy cheaper insurance rates by taking a defensive driving course. Some car insurance companies give discounts to drivers with approved defensive driving courses. However, ask your insurer if they offer this discount before enrolling in the class.
8. Avoid Unnecessary Trips
Limiting unnecessary trips will save you some cash on your insurance. The reason is that a lower mileage means you are a lower-risk customer that makes it easier for insurers to cover your car and vice versa. So, avoid unnecessary trips and save more. Also, be honest with your insurer when estimating your vehicle’s mileage. Remember, you may lie about your mileage but still suffer your policy’s invalidation once the truth emerges.
9. Remove Unnecessary Modifications
It’s okay to modify your vehicle if you love it, especially if you are a “bling-bling” person. For instance, you can upgrade your car’s audio, style, or performance specs. You may also add alloy wheels and other body kits. However, be ready to pay more for insurance because such cars are hotcake targets for thieves. Your car will also become costlier to repair than other cars within its category because you will need pricier parts.
10. Shop Wisely
Lastly, shop for the cheapest car insurance. Request quotes from different potential insurers and analyze them before deciding.
Saving costs on your car insurance is desirable and possible if you know how to go about it. Remember these ten commandments this guide discussed to get the most value for your money.