How can you save on car insurance?
Some factors are out of one’s control, such as inflation and extreme weather. However, there are certain ways to control prices from increasing even more.
Factors such as driving history, vehicle type, coverage limits, and, for drivers in most states, credit history are factors within your control that can positively influence your auto insurance premium.
How can you save on car insurance?
- Carefully Decide Your Car’s Model:
- Your car’s model directly impacts the premiums you pay. Vehicles with higher engine cubic capacities (CC) tend to have higher premiums due to increased accident risks. If you don’t need a high CC vehicle, consider opting for a more budget-friendly model to save on premiums.
- Opt for Pay-as-you-drive Insurance:
- Pay-as-you-drive insurance tailors premiums to match your driving habits. Instead of a flat fee, you pay based on the distance your car covers during the policy period. If you don’t drive often, this plan can lead to significant savings. A tracking device records your driving behavior and rewards responsible habits with lower premiums.
- Avoid Purchasing Every Add-on Cover:
- While some additional covers (like engine protection or depreciation cover) may be essential, adding every available coverage option can inflate your premiums. Evaluate each add-on cover based on your circumstances and driving habits. Prioritize essential coverages to avoid over-insurance.
- Shop Around at Renewal Time:
- Compare quotes from multiple insurance companies. Insurers offer discounts for students, good drivers, anti-theft devices, and bundling with homeowners insurance. Choosing a higher deductible can also lower your rate.
- Buy Only Necessary Coverage:
- Skip extras you don’t need, such as rental reimbursement if you own an extra car. Assess your requirements and tailor your coverage accordingly.
- Consider Bundling Policies:
- Bundling policies (such as home and auto insurance) can lead to savings. Look out for buy-one-get-one-free offers to reduce your premiums.
Remember, finding the right balance between coverage and cost is crucial.
