Car insurance is a necessary part of your life if you drive a car. While it is often expensive, there are some things you can do to save some money on your car insurance costs. Of course, the best thing to always do is being a safe and responsible driver. Saving money on your car insurance involves being an educated consumer, a smart shopper and making proper and beneficial decisions. There are four main areas that affect how much your insurance will cost: who is driving the vehicle, the car being insured, the policy coverages and details, and the insurance company.
The Driver(s)
Part of what determines the insurance cost is who will be driving the car. Some ways in this area to save money are:
– Take accredited safe driving course(s) and document them to your insurance company.
– Older drivers with a safe driving history get charged less money. If possible, have at least one such driver on the policy.
– Having a job type and title that implies responsibility often results in savings.
– Try to secure a ‘safe driver discount’ if you can.
The Car
Part of the insurance covers the car that is being driven. Ways to save money in this area are:
– When buying a car, try to get one that has a very good safety rating, lower cost repair requirements, and a low theft and accident occurrence.
– The less miles you drive the car, the less money the insurance will be. Accurately report your mileage to the insurance company.
– Keeping the car parked off the street and having a good anti-theft system.
– Avoid any major modifications or customizing to the car.
The Policy
Just as in buying anything else, you should be a smart and informed consumer:
– Always shop around, try to get and compare at least three detailed quote offers.
– Only get and pay for coverages that you really need, and not padded-on extras (unless they are truly ‘free’).
– Increasing the excess (deductible) limits will reduce the premium.
– Sometimes combining all of your insurance policies (life, home and auto) can save you money overall.
– Paying the premium annually, rather than monthly, often saves you money.
– Don’t have an ‘auto renewal’ feature. Always shop around again, before starting a new policy period.
The Insurance Company
While it may be tempting just to take the policy with the lowest quote, you should first make sure that the insurance company is worth doing business with:
– Does the company have a long term, good reputation? – Check their online consumer rating.
– What is their claim handling reputation and rating? – A low premium will do you no good if the company doesn’t properly take care of your claim.
– Are they fair and understanding? – Will they cancel your policy right away because you had an accident?
– Is there an accessible person – such as a local agent – to help you deal with the insurance company?
