Before buying a car, 90% of all buyers spend at least two weeks on the web researching the various makes and models. They compare prices, maintenance, and fuel expenses before zeroing in on one model. However, more than 58% of the owners do not compare or research auto insurers before purchasing insurance.
Car insurance is a must for all automobile owners. Therefore, it makes sense to invest some time and energy in investigating the factors that influence the cost of insurance policies. If you want the best coverage on the lowest prices, you might want to find out how to save the most on car insurance.
1. Always shop around
You need to look at multiple insurers in your locality to find the best price. Shopping for insurance is not very different from shopping for cars. You must have checked out numerous dealerships in your area before settling on a fair price. Auto insurances require keen comparison. Unless you approach multiple vendors, it is impossible to find the best price.
2. Drive safely and smartly
Traffic violations and DUIs can increase the cost of auto insurance. Car insurance companies always check the applicant’s record before offering a price. In fact, going back to traffic school in the place of receiving a ticket can take points off your license and reduce the cost of auto insurance.
3. Pick your car smartly
Honda CR-V, Jeep Cherokee, and Subaru Outback typically cost less to insure. Check out more models that bear a low insurance cost. Minivans and SUVs are cheaper to insure.
4. Ask for insurance discounts
Car insurance discounts can save you a fortune every year. Apart from paying an entire year’s premium, you can ask your agent to provide you with a list of offers applicable for your car model, and coverage type.
5. Chuck the coverage you don’t require
The state mandates minimum coverage for many cars, but all types of car insurance are not compulsory. Old cars should drop their collision and comprehensive coverage. These insurance types never pay more than the car’s value. If your car’s worth has depreciated over the years, you will benefit from dropping them altogether.
6. Increase your deductible
Save money on insurance by raising the deductible. A deductible is an amount your insurer does not pay while covering the cost of repair or replacement. For example – if the total cost of repair is $1500 and your insurer pays only $1100, the deductible is $400. By increasing the deductible, you can save more on your coverage cost.
7. Bundle insurance coverage
Many insurers offer attractive discounts on bundled insurance policies. Think about purchasing two or more insurance at one time from a company. Think about coupling homeowner’s insurance and auto insurance from the same place.
Following the seven points can help you reduce the cost of auto insurance without compromising on the quality of coverage. Never judge an insurer by their quote. Look at the services and features carefully for making a sound decision.