While the cost of your premium will vary depending on different factors, there are some ways you can save on your car insurance. Shopping around for the best price is the best way to obtain a lower premium. This is done by getting quotes from various insurance companies and agents. When you are looking for a low cost, make sure you will still get the coverage you need. A low premium will mean nothing if you are not properly covered by the policy. Price and coverage are not the only things to consider. Here are 5 Ways to Save Money on Car Insurance
Talk to an insurance company first
If you are planning to buy a new or used car, talk to an insurance company first. They will be able to tell you what the new cost will be. When buying a new car, your premium will be based on the cost of the car, what is would cost to repair and what the safety ratings are. Many cars are equipped with safety features. These features could get you additional discounts on your insurance. If the vehicle, whether used or new, is a target for thieves, you will pay more for insurance.
Choose high deductible
When you are looking for a policy, ask for a high deductible. The higher the deductible, the lower the premium. While this means you run the risk of paying more out of pocket if you’re in an accident, it also could add up to hundreds of dollars in savings on the premium. You need to decide which is best for you, a higher premium or a higher deductible.
Reduce the coverage
If you have an older car, reducing the coverage on the policy will also reduce what you pay. In some cases, what you pay for a premium is not cost effective if the car is old. Each year your insurance policy is renewed. You can make these changes before the new policy goes into effect.
Combine home Insurance with your car Insurance
If you have homeowners insurance through a different agent, consider combining the homeowners with your car insurance. Many companies offer a discount when you do this. This could result in a 20% savings each year. While this option is attractive, it is not always the best choice. Don’t stop getting quotes and comparing them. In some cases, it will be cheaper to keep the policies separate if you get a low quote.
Ask for discounts
Discounts can save a lot of money. Many of insurance companies offer discounts such as safe driving, safety equipment, anti-theft systems and low mileage discounts. Always ensure that you inquire first those discounts that the company offers. Also ask about group insurance. There are companies that offer additional discounts to drivers who obtain their insurance through a group plan offered by their employer.
In conclusion in as much as low cost insurance is of great importance, do not compromise quality and reliability with cost. Be sure to choose the right company, one that will be there for you when you file a claim.