The cost of vehicle insurance premiums can vary with each company depending on a number of factors. If you’re trying to reduce your expenses, there are a number of ways you cut down the cost of your car insurance and save more money.
- Avoid claiming on small amounts. Small claims can make a difference to your premiums. When you make small claims on your vehicle insurance, there is a good chance that you’ll be paying a higher premium at renewal. Even worse, an insurance provider may refuse to cover you if you made a number of small claims in a year because they can use this as a tool to predict how much you could cost them in the future. The more claims you make, however small they are, the riskier and more costly they think it is to cover you.
- Assess your insurance needs. Make sure to evaluate what you need in an insurance policy. For example, if your savings or funds are insufficient to have your car repaired or replaced if your vehicle gets destroyed or stolen, then it’s best to have collision and comprehensive. However, buying collision and comprehensive for a car that is worth ten times less than the premium may not be as cost-effective.
- Increase your deductibles. A vehicle insurance deductible is the amount of money you cash out on repairs before your insurance covers the rest of the balance. For instance, if you’re involved in a car accident that caused $5,000 worth of damage to your vehicle and your deductible is $500, you are only responsible of paying $500 toward repair. Having higher deductibles mean having lower premiums. But before choosing a higher deductible, make sure that you have enough money put aside to pay for repair costs.
- Maintain a good credit history. A solid credit history can help you lower your insurance costs. Majority of insurance companies use credit history as a basis for calculating premiums on vehicle insurance because generally, people who are able to manage their credit make fewer claims than others. Insurance providers also size up their clients on how risky they are through credit scores.
- Take advantage of multi-policy discounts. Having all your insurance policy with a single company can help you save money. A multi-policy discount is one of the major discounts insurance companies give out. When you have more than one insurance policy through an insurance provider, you are saving money on competitive rates. In addition to this, keeping all of your insurance policies in one place can help you easily manage your bills and make the process simpler for you when filing a claim.
- Compare vehicle insurance rates. When looking for the cheapest vehicle insurance, comparing vehicle insurance rates can help you identify which company offers the best one for you at the most affordable price. You can directly call insurance companies or research on their websites for information. Once you receive a vehicle insurance quote from each company, you can narrow down your choices based on your needs and budget.
Here’s a little bonus: adding another driver to your policy may help reduce the cost of the total premium as long as the other driver has a good and clean driving record, of course.