Choosing the right coverage can be a difficult task and involves plenty of research into companies and quotes.
It’s important to pick only the coverage you need and take your situation into consideration when choosing. However, apart from only buying the mandatory coverage for your vehicle, there are quite a few ways to save money and get the most out of your insurance dollars. Companies take many factors into consideration when deciding a premium, and they all use a different algorithm. Find the right company for your situation, and consider these tips to reduce your rates:
- Choose annual over monthly payments: paying car insurance in one annual installment can save you money. Some companies charge administration fees for payments, which can build up through monthly payments.
- Increase your deductible: raising car insurance deductibles can lower your premium, but in the event of the claim, a policyholder must be able to pay the full deductible. Increase your deductible to a safe amount so that it lowers your premium, but in the event of an accident, you can pay it to make a claim.
- Drive safe and keep a clean driving record: by driving safely, your record can remain clear of traffic violations and accident claims. The cleaner your driving record, the more likely you are to meet the requirements for safe driver discounts, and the lower your insurance premium is likely to be.
- Compare at least 3 different policies: shopping around for car insurance, whether you do it yourself or through the broker, is the only way to get the best possible deal. Companies have different rates for different client situations and are constantly adjusting the formula used to set their rates, so prices of policies are constantly changing. Drivers should shop around during renewal to evaluate each option.
- Only submit a claim when necessary: Submitting a claim may alter your clean driving record and increase your premiums. If the damage to your vehicle is less than you would need to pay for the deductible, it is not necessary to submit a claim.
- Install safety devices: Installing winter tires and anti-theft devices may reduce your premiums since you pose as less of a risk to insurance companies.
- Bundle your insurance: bundling your home and auto insurance may help you get a discount on coverage and make it easier to keep track of insurance information. You might also be able to get a multi-vehicle discount.
- Take a driver training course: If you’re a new driver, taking a driver’s education course or even a defensive driving course may help reduce premiums depending on the company.
Always ask your insurer about possible discounts that you may qualify for as every company is different. Comparing multiple car insurance policies not only prevents you from overpaying for car insurance, but also provides drivers with a peace of mind.
