Although getting through life without insurance is hard, premiums can be a considerable expense. However, you can implement various strategies to decrease your insurance premiums. These tips will help you decrease the burden on your wallet if you don't know where to start.
1. Shop Around
Prices differ from insurer to insurer, so it's worth shopping around. Obtain at least three quotes by contacting companies directly or accessing information online. The insurance department in your state may also offer comparisons of costs charged by major insurance companies.
Remember, you purchase insurance for financial protection and peace of mind, so it's imperative you select a financially stable company.
Don't shop by cost alone. Instead, obtain recommendations from relatives and friends. You can also contact your state department to establish whether they offer information on customer complaints by an insurer.
2. Drive Safely
Generally, the longer you drive without major accidents or citations, the lower the premiums will be. It's also important to note that the more time spent driving and the farther the distances, the higher the probability of ending up in an accident irrespective of how safe you are as a driver. Consider public transportation, car-pooling, or riding your bike.
3. Insurance-friendly Vehicle
The vehicle you drive makes a huge difference in your vehicle insurance premiums. Although there isn't much you can do about it right now, there's a lot you can do when the time comes to purchase a new vehicle.
When you do, ensure that vehicle is insurance friendly. Therefore, avoid excessively costly or sporty vehicles. At a minimum, your collision coverage cost will increase along with the vehicle's value. However, beyond costs, it's important to understand that some cars carry higher insurance charges.
Besides the kind of vehicle and the price you pay for it, you should ensure it includes certain safety elements, which can generate lower premiums. The best way to do so is to obtain a list of safety equipment that will yield a lower premium from your insurer.
As soon as you do, ensure that any vehicle you purchase integrates as many as possible, for instance, a security system and anti-lock brakes.
4. Insure Multiple Drivers/cars
If you receive a quote from an auto insurer to insure one car, you might end up getting a higher quote than if you asked about insuring numerous vehicles or drivers with that company.
This is because insurers will offer a bulk rate because they need your business and in some instances, they're eager to offer a deal if you'll bring in more business.
To receive a discount, ask your insurer/agent to see whether you qualify and obtain a quote. Beware that several drivers must reside at the same residence and have a blood or marriage relation. Nevertheless, two non-related persons may obtain a discount as well though they must own the car jointly.
5. Request Higher Deductibles
A deductible is an amount you pay before your policy kicks in. Keep in mind that higher deductibles can decrease your costs considerably.
For instance, raising your deductible from $200-$500 could lower your comprehensive and collision coverage by 15-30%. Nevertheless, ensure you have sufficient money set aside to pay in the event that you have a claim.
6. Consider Eliminating/decreasing Coverages
While most states need minimum levels of coverage, exceptions exist for other kinds of coverages. For example, you may establish you don't have to carry comprehensive and collision coverage if you don't have an alien on your car and it's older. Make sure you examine your state's laws to establish what's applicable.
7. Credit Score Improvement
Numerous insurers currently use a consumer's credit score as part of the criteria for establishing the cost of his or her insurance premium. To ensure you obtain the best deal possible, make timely bill payments and contest any reporting errors.
Insurance premiums can affect your budget considerably especially since you need varied insurance coverages, ranging from auto to health. Fortunately, you can lower your premiums using these tips.