Do you need new car insurance? Car insurance is an expense that everyone has to bear. Most of the people are unaware of the fact that car insurance is not a fixed cost and there are some tips that can help you in lowering car insurance cost. You can save hundreds of dollars every year with a good driving record, location, vehicle, and driving habits.
How to save money on car insurance?
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Let us find out some tips to save money on car insurance.
- Carpooling: Mileage is an important parameter for every insurance company. A driver with 7,500 miles falls under pleasure rate category. If you fall under this category, you will get the lowest possible rate on your insurance. Drivers driving up to 13,000 miles fall under medium category and above 13,000 miles have to pay higher rates. Carpooling can help you cut down up to 75 of the driving miles. The cost of car insurance may vary up to 25 percent in the pleasure and higher rate category.
- Choose car insurance according to your need: There is a significant difference between the type of insurance you require for a brand new and an old car. A new car requires both comprehensive and collision coverage which costs slightly higher. If you own an older model, it is best to check the collision coverage that you require and drop the extra coverage you are paying for.
- Shop from a single vendor: It is best to buy all your policies from a single insurer. A company providing homeowner insurance or renter’s insurance for your house might offer a discount in your car insurance. Car insurance poses a huge risk to the insurers and you can bring that risk down by combining different insurance policies. This approach is often called as a “multiline” approach in insurance industry.
- Choose higher deductibles: Every owner has to choose a deductible at the time of purchasing car insurance. Deductible is the amount of money that you need to pay towards repairs in case of an accident. For a 2008 Honda Accord with a deductible of $250, you need to pay a premium of $516. On the contrary, with a deductible of $2,500, you would be required to pay only $248 for the insurance. However, this option is only for the drivers with a safe-driving record. Maintain a contingency fund for any emergency accidents.
- Audit driving habits and requirements: Did you have a change of job? If you have lowered your driving requirements, it is best to inform your insurance agent. Reduced driving mileage can help you cut down unnecessary car insurance payments. Most of the people ignore this fact and pay higher insurance rates.
Saving money is an art and you need knowledge to succeed in saving your money. Keep these points in your mind before choosing your next car insurance.