We always wish that car insurance could be cheaper, no matter how affordable it is. Sometimes it’s easy to fall for the trap of thinking there is no way to save money on insurance. This article will show you 10 ways to make car insurance more affordable.
This may seem obvious but you need to review your current policy and get rid of anything you don’t use. You may have had a different view of things when you first got your insurance policy.
You don’t have to include your children in the policy if they live far away from you. This will save you money. This is effectively an extension to the first item since your children may have lived at home when you created the policy.
If you own multiple vehicles, you should find out if they can be consolidated with the same insurer. This will get you a discount.
Fourth, discover if there are any discounts that you may be eligible for. i.e. non-smoker discounts, car/home policy discounts.
Fifth, it might be a smart idea to cancel collision coverage if your vehicle is less than a certain amount (e.g. a car that is very affordable or an old car). The amount you pay to your insurance provider for this could be much higher than the car’s actual value over a long time. Keep in mind that there is some risk involved (remember Murphy’s laws). It is possible to be in an accident as soon as you remove this item from your insurance policy.
Sixth, consider your life as an insurance provider’s view. Your insurance premiums could be affected if you have recently moved or are planning to move. It could be due to moving to a more risky area (from an insurance company’s point of view). This perspective can help you make more informed decisions and qualify for lower premiums.
Seventh, it’s common sense. Be more cautious when driving. This is good for your health but it can also mean higher insurance rates if you are a reckless driver. This is a great time to be safe, especially in these difficult economic times.
Eighth, increase your deductible to lower your premium. You can think of this as having different ‘degrees’ of insurance. At the extreme, your deductible would be equal to the car’s value and you would pay no premium – effectively you don’t have insurance. Your deductible might be very low, but your coverage would still be maximum.
Ninth, when purchasing a new vehicle, make sure to check with your insurer if this affects the premium. Some car models, like sports cars, can increase the premium. However, the reverse is also true: premiums for cars with smaller engines are often lower.
The tenth and most important is to get quotes from different insurance providers. You can do this through this site (or this page). It is very easy to do. The cost of one policy is likely to be lower than the other. It is important that all policies are equivalent so there are no unpleasant surprises later.
Bonus tip: It might be worth checking with the Better Business Bureau to see if the insurance company you are considering pays their claims on time. Some are more troublesome than others.
