10 Tricks on How to Lower Car Insurance
Car insurance is important in many ways, but its price is frequently a reason why some people stop using the services of certain insurance companies or decide not to purchase the insurance at all.
Paying a lot of money for car insurance can be tough, especially if you have a lot of other expenses (and who doesn’t). Many people, without noticing, often pay for the services they don't use. They are usually novices in driving, and they might not have realized yet what is essential, and what are the things they could live without when it comes to the auto insurance policy. But there are some tricks on how to get cheap car insurance. And don’t worry, it doesn’t include anything illegal! You’ll just need to make the calculations and to make a list of the features you actually need. Have a look at this list of 10 tips on how to lower car insurance – it will be especially useful for beginners and for those who want to make some changes in so far experience with the auto insurance companies.
1. Check for More Than One Insurance Company
Shopping around can be boring and exhausting activity – you go around about 10 insurance companies and look for the services which seem identical and, in the end, you have no idea what the right thing is. Checking for only one insurance company is the most common mistake among people. You usually don't have enough time to visit the offices and stay there forever until you find the most suitable product, right? Well, have in mind that the patience pays off – just like your policy will if you dedicate to its searching. Relax, you won’t have to go for 10 companies – visiting 2 or 3 is quite enough. Go and check for the services they offer and make calculations based on that. Not all companies provide the same services, nor they fit everyone's budget. So, don't despair if you don't find what you want from the first – there are more companies that are waiting for your call! Plus, you can use services from insurance agencies. They offer services from many insurance providers like Safeco, Markel, Travelers, Nationwide and many other. Their staff will explain all the options you have, compare policies and help you make a proper decision.2. Lower the Mileage
If you pass more than 10,000 miles a year, it's more probable that you'll pay more for the car insurance services. And why is that? When it comes to the insurance policy questionnaire you'll need to fill before you sign the contract, it includes the questions related to the mileage you drive. If it takes you more time to arrive at your job, for example, the more expensive premium will be. The auto insurance fellas see that as a circumstance for a possible accident since you spend a lot of time on the road. The best option would be to avoid driving as much as possible. Try using public transport, bicycle or your feet – it's eco-friendly, budget-friendly and it brings some healthier habits to your everyday life.3. Drive Carefully and Consciously
Not only you save the money, but you also make sure you don’t bring yours, or someone else’s life in danger. If you have a clean driving record, you gain the company's trust, and they reward you with a cheaper insurance policy. If the company sees that your record contains accidents and violations, they will charge the premium expensively. When someone seems like an unreliable driver, he or she represents the financial threat for the company, and it needs to protect itself somehow. Speaking of violations, even the smallest ones count as a minus. For example, some insurance companies tend to increase their services for even 11-13% if you have a speed ticket which depends on how fast you were driving, the speed limit, and the state laws.
4. Try to Increase the Deductibles
In case of the damage, you need to pay the deductibles – the amount of money you pay out of your pocket for covered expenses before your insurance policy kicks in. The thing is that many people look for paying less for the deductible because no one likes giving a lot of money at once. It’s a mistake, again. If you pay more money for the deductibles, your insurance premium will be way cheaper. The price of the deductible varies from $250 to $1,000, depending on the policy. It can affect your annual premium price, and in case you pay more for it, you can negotiate a discount with your company.5. Take a Course for Defensive Driving
Many companies will offer you to take a course for defensive driving, in site or online – it’s actually a course which provides you with the extra knowledge of how to prevent accidents and how to drive with more skill and confidence. By opting for this course, you gain an opportunity to get a 5-15% discount on your insurance policy. Also, if you pass it, your points and tickets might be annulled which brings to a clearer driving record. However, before you decide to enroll in a course, talk to your insurance agent and check if that company gives a discount – most of them do, but you never know. Also, speaking of the ticket annulation, check with the state law – not all the states apply the same rules.6. Insure More Vehicles in the Same Company
If you’ve gained trust in your insurance company and you want to insure another vehicle, they’ll be happy to meet your needs and give you an extra discount. If you share the vehicle with your family members, that's another excellent opportunity for getting a lower policy price. Usually, the requirement is that the co-owners of the car live in the same residency, that they are related or to have a certificate that proves that they own the vehicle jointly (in case of friends or business partners). When it comes to teenagers in your family, they are always on a blacklist – since they're new to driving, their inexperience is a big factor for increasing the policy price. But, if your son or daughter is a good student, the companies will be more accessible. Most insurance companies offer 6-20% discount for teens whose grades are B or above. Studying pays off, children!
7. Combine Home and Auto Insurance
If you happen to have home insurance at a certain company, that will be the first step of achieving low car insurance. Most companies encourage their clients to insure their cars together with their home since it comes with a special discount which can increase your annual savings. On the other hand, if you're not satisfied with the services of your home insurance provider, think about canceling and find another one which offers better options for both home and car policies. Sometimes it pays off having various insurances in different companies. For example, you insure your car in a company A, your home in a company B and some other in company C – because each of them provides satisfactory services for your needs. However, that rarely works.8. Exclude the Features You Don’t Need from the Policy
Many people often ask themselves Why is my car insurance so high? The answer lies in less necessary policy coverages. One auto insurance policy contains a lot of coverage features. For example, you can choose roadside assistance, collision or comprehensive insurance and you’ll definitely have to pay more. This is especially referred to the old cars. For instance, if your vehicle worth $1000, and the collision insurance costs about $500, that's not a cost-effective option at all. So, think wisely before you purchase something expensive – that might not be what you need.9. Use Your Work Connections
If you work in a military section, if you’re a teacher or if you’re a part of some other professional group, the insurance company might have something for you. Many companies offer group discounts – check with your employer and with an insurance company and see if there is something which could lower the price. As always, there is a special discount for students. The insurance companies also offer a special discount to some alumni programs and to those students who've just graduated from college. If you're one of them, go and look for a company that offers such a discount – it will be a significant detail that will help you save more.10. Choose a Cost-Effective Car
When buying a car, most people often don’t think of the insurance-friendly one. The thing is, the better the vehicle is, the higher is the policy price – have that in mind if you don’t want to spend a lot of money on expensive insurance companies. Newer vehicles, especially the foreign ones, usually require more expensive repair and parts – that’s why the insurance companies tend to charge more. However, there’s a trick – try to find a car with daytime running lights, anti-theft devices,air bags and other essential safety features. In that way, you’ll avoid additional expenses.Final Thoughts
So, that would be a list of tricks of how to get cheaper car insurance. All in all, make a list of the features you need, check for more than one insurance company and don’t hesitate to consult someone with more experience. Don’t be afraid to communicate with the companies. Ask about all the things that you don’t understand, double check the information you’ve heard from someone (for example, there is a rumor that red car owners pay more for the insurance, which has nothing to do with the truth) and don’t leave until you get all the info you need. Also, negotiate – if you want to get a discount, you must be polite and persuasive. Ask the agents all about the price discount requirements, be argumentative and don’t give up easily. Good communication makes way for all the things that matter in life.