Easy Tips and Ideas for Cutting Car Insurance Costs
Updated On Oct 14, 2023
Many people look for ways to lower their car insurance premium. You can consider the tips mentioned in this article to cut down your car insurance cost.
With ever-increasing prices of cars and a substantial rise in the rates of car accidents, motor insurance rates are driving up across the country. On account of that, many people are now thinking of ways to lower their car insurance premiums and avoid being heavy on their pockets.
14 Tips and Ideas for Cutting Car Insurance Cost
You can consider the below mentioned tips to cut down your car insurance cost:
- Drive Safely: Being a responsible driver can help you in reducing the amount of your insurance premium. This is due to the fact that people who drive safely and minimize traffic violations are rewarded by the insurance company.
- Compare Plans: If you are looking out for your car insurance renewal policy whose insurance premium has gone up, then consider looking around and comparing quotes from the different insurance companies. Also, make it a habit to compare and obtain car insurance quotes from different companies yearly as there are high chances of obtaining a lower premium rate.
- Use Public Transport: The policyholder, who usually drives long distances daily is supposed to pay a higher premium amount. Therefore, make use of public transport whenever possible.
- Defensive Driving: People who have completed an accredited defensive driving course are at times provided a discount by the car insurance company.
- Increase in Cost With Respect To Location: Insurance providers take into consideration your residence and office location during the calculation of your premium amount. The insurance companies have their own parameters to associate the risks i.e high, medium, and low depending upon which the car insurance premium is fixed.
- One Car and Many Drivers: The policyholder, who belongs to a joint family and is buying a car for all the members of the family to drive, then in that case you can expect to get a lower premium quote from the insurance provider.
- Credit Rating: Keep a close look at your credit rating as with a higher credit rating, responsible behavior is reflected and there are chances for your insurance company to consider it while fixing your premium amount.
- Talk to Your Insurance Agent: You should discuss with your insurance agent to guide you regarding a variety of discounts available by various insurance companies.
- Re-evaluate Your Comprehensive Coverage: In case you use a very old car, then the amount of depreciation would be on a higher side and therefore carrying comprehensive car insurance along with it won’t be worth it. In such a scenario, try to limit down your coverage.
- Anti-Theft Device Discounts: You may get a lower premium rate if you install anti-theft devices in your car. Talk to your insurance company about the same and they will be able to guide you on what all devices need to be installed to get a lower premium.
- Big Cars Cost More: Insurance for a big car is higher than the small and lower cost commute cars. Look out for exact rates to insure your car before buying a policy.
- Make Use of Mass Transit: The insurance company generally asks a few questions before giving the insurance. One of them is the number of miles you drive the insured car yearly, so if you drive 3 miles a day, then you end up paying higher premiums as compared to a person who drives just 1 mile a day.
- Additional Discounts: Look out for a variety of discounts offered by the insurance provider such as lump sum payment of premium, discount offered on an online purchase, etc.
- Pay As Per Usage: Certain insurance companies provide a policy with a premium depending upon how much you drive. Look for it, because if you drive your car occasionally then you can end up paying a much lesser premium amount.
Insurance prices for Cars will continue to surge in the future. However, following some important tips mentioned above, will definitely help you in cutting down on your insurance cost.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.