Car insurance is a necessity. Besides being a requirement by law, car insurance covers your back in case of an accident by covering all the liabilities that you wouldn’t manage with an out of pocket arrangement. The downside is it’s quite expensive. Talk of a necessary evil.
You can’t opt out of car insurance but you can find ways to lessen the financial burden that often comes with high premiums without voiding your insurance contract. This calls for understanding the factors that insurance companies consider when calculating your premiums and finding ways to work around them so your get the lowest rates.
Here are ways to save on car insurance.
Maintain your car
Before giving you a contract, most insurance companies send someone over to check and test your car. Insurance premiums are based on the value of the car, the inherent safety risks from the manufacturer and the condition of the car.
A poorly maintained car presents an increased risk of accidents and injury and this attracts a higher premium to cover this risk. It is therefore important to have your car maintained and serviced regularly in repair shops with technical staff from the Best Auto Mechanic Schools.
You can negotiate for lower premiums if your car is in the best condition and you have installed additional safety features.
Request for discounts
You will never know if you are eligible for an insurance discount if you don’t ask. Request your insurer for a discount and present your case.
You can get discounts depending on your driving experience, driving record, the type of car you own and for being a loyal customer.
If you have been driving for years without accidents then you are considered a lesser risk and this can attract discounts on your premium.
One stop shop
Save yourself the headache of having different providers for your car insurance, home insurance and health insurance and find one suitable insurance company to take care of all your insurance needs. This puts you in good stead to benefit from generous loyalty discounts.
You can save on your car insurance premiums by up to 20% by having a single company handle all your insurance policy covers.
Improve your credit score
Paying your loans and credit card debt on time affects your credit score which in turn determines the cost at which you borrow money. In some states, your credit score is also factored in when calculating your car insurance premiums and this why you might want to honour those debts.
Find ways to grow your credit score if you want cheaper insurance premiums.
Shop around
A common mistake car owners do is to stick with an insurance company for several years without looking at what other players have to offer. You might find insurance providers with better offers if you shop around.
Make it a habit to always review your insurance policy every two years and play the field looking around for what other companies have to offer. The grass may be greener on the other side.
