Like it or not, car insurance can be a major expense, especially if you rush in getting it from the first provider you find. Yet, the good news is that there are a few things you can do to minimize or reduce the burden on your wallet when purchasing insurance for your car.
Car insurance is often perceived only as an expensive nuisance, or at least until you need it. So, there’s no point in thinking of it as a necessary evil. However, despite its importance, it shouldn’t cost you an arm and a leg.
The experts from explain “The price of car insurance can depend on many factors including car, driving experience, age, job, location, and even the average costs of vehicles.” So, it can be really confusing to know how to get those costs down.
Ask for multiple quotes
First things first, just like we mentioned above, it is not a good idea to get car insurance from the first provider you find. Why? Because you may be overpaying and not even know it since you didn’t ask for a quote from another provider.
Comparison shopping is simply the obvious starting point if you want to make sure that you aren’t spending more than you should on car insurance. And, although you may think that premiums can’t vary that much, you might be surprised. So, get rid of laziness and check multiple quotes before deciding on one provider.
Consider the car you drive
Now, we know that changing your car to get lower costs for the insurance is out of the question. And we aren’t even suggesting that. Yet, considering the car you drive before looking for car insurance can give you an idea of what costs you should expect. This way it will be easier to recognize when a provider is asking you to pay too much.
How does the car you drive influences the price of car insurance? Your car’s value, type, and engine size can make a major difference to the insurance costs. Generally, the rule implies that the smaller your car is, the lower the price of the insurance.
On a side note, you should also know that, usually, imported cars can be just a little bit more expensive to insure mostly because parts are often harder to find and cost more.
Increase your deductible
Let us first help you become familiar with this concept: the insurance deductible, basically, represents the amount of money you will have to pay out of your pocket in an insurance claim before the insurance provider will pay any expenses.
Whether you are getting a life, health or car insurance, remember that its purpose is to help you handle financial losses you could not otherwise afford to handle. Therefore, you should go for the insurance that you actually need to handle acceptable insurance.
For example, a $100 deductible is considered low by many people. So, if, for example, you would afford to handle a $ 1.000 loss, why would you decide on a deductible at only $100 or $250? You are just buying insurance that you don’t even need.
So, by raising your deductible, you can actually save more money. However, this will vary depending on each provider. Yet, for example, one study shows that if you are doubling your deductible from $500 to $1000, you will be saving 9%.
Equip your car with security devices
Another strategy to get a cheaper car insurance quote from your provider would be to keep your vehicle safe. How? By making it less of a target for thieves. If you equip your car with an alarm or a tracker, or an immobilizer to make sure that your car isn’t going anywhere, it will be less likely for thieves to try to steal it or break in.
Therefore, insurance companies like Duliban Insurance will most likely consider your car safer to ensure, thus offering you a cheaper car insurance quote. Most newer car models are equipped with an alarm and immobilizer as standard features. But, even so, you may want to consider equipping your car with some extra security devices such as a tracker if you want to make sure that you will get the cheapest possible car insurance cost.
Handle your finances wisely
Like it or not, the car insurance costs can be affected by how you handled your finances in the past. In most states, insurance providers consider your credit history as an important aspect when giving you an insurance quote.
In fact, studies point out that there is a strong correlation between how we handle our finances and claims history. Consumer reports show that drivers who had a pretty poor credit score paid $68 to $526 more per year than drivers with better credit scores. So, before you start asking for insurance quotes, you should pay a bit more attention to how you are handling your finances and how they will affect your credit score.
Ask for the additional discounts
You may have never heard about this one, but most auto insurance companies try to attract their clients with plenty of additional discounts. Yes, you may know about some of them such as a discount for safe driving.
However, there are also plenty of other additional discounts including accident fee, good student, multi-car, new vehicle. Also, you may get a great discount if you combine your home and car insurance from the same provider.
So, before deciding on an insurance provider, you may want to ask about whether or not they offer some of these additional discounts.
Obvious tip: Stay safe on the road
It’s no brainer that if you want to keep premiums low, you need to avoid any traffic incidents including accidents and getting traffic tickets. Yet, it’s also too important to not mention it since it is the best way to get the cheapest car insurance costs. As long as your driving record is clean, your insurance provider will most likely offer you the best quote you can get.