Auto insurance can burn a hole in your pocket, especially if you have had an accident or have been cited for traffic violations. The good news is that you can take steps to reduce your auto insurance costs by following some simple and easy measures.
Here are some tips on how to reduce the cost of your auto insurance:
Get Several Quotes
Get in touch with multiple auto insurance providers and ask each one to send you a quote. You can also contact insurance brokers and get quotes. This will allow you to compare quotes and find out what does each insurance cover. Make it a point to read the fine print. It is also necessary not to get swayed by cheap quotes, as they may not be what you are looking for. You should be looking for an insurance company that is financially secure and has a reputation of paying out claims quickly and without hassles.
Consider the Type of Car
You may be surprised to learn that the make and model of the car has a profound influence on the cost of auto insurance. It is common sense that a more expensive car will be costlier to insure compared to an average-priced car. If you intend buying a brand new car, make sure you first check the insurance cost of that make and model before finalizing the purchase. This is especially true if you are living in a high crime area, as many insurance providers may not offer you coverage, as the risk is too great.
Age and Value of the Automobile
The age and value of your car also has an effect on your auto insurance costs. If your car is old and the value is low, it does not make sense to go in for comprehensive auto insurance. Instead you should be looking to drop certain coverage from your auto insurance and this will help to reduce the cost substantially. Typically, you should multiply the monthly insurance premium by 10 and compare the resultant amount with the present value of your car. The multiplied amount should always be less than your car’s value and if it is not, you should be looking to do away with certain coverage to reduce your overall auto insurance cost.
High Deductibles
Many auto insurance providers do allow clients to opt for deductibles, as these help to keep your auto insurance costs low. In this type of coverage, you have to pay a certain amount for repairs and other issues before your insurance becomes valid and offers coverage. Once again, this is a good way to reduce the insurance cost, but make sure you get several quotes to see different levels of deductibles.
Multiple Insurance Policies
You can also opt for multiple insurance policies using the same insurance provider. This will allow you to request the provider to give you a discount. However, it would mean having more than one vehicle or using the insurance provider for some other type of insurance coverage, such as homeowner insurance.
Improve Your Driving Record
If you have a good driving record, auto insurance providers do offer you discounts. This means not speeding, no DUIs and not driving dangerously or recklessly. It can not only save you money on your vehicle insurance, you will also end up getting many other benefits.
Car Pools
Though this will not really save your insurance costs, it will help to reduce your commuting and thereby reduce the risk of accidents. You can opt for a car pool to commute to and from work. This will reduce cost of traveling and thereby save you money.
Using Anti-Theft Devices
If you install anti-theft devices in your vehicle, your insurance provider will be more conducive to giving you a discount on your vehicle insurance. As these devices reduce the possibility of car theft, your insurance provider will view it very favorably.