Everything continues to rise; many consumers are looking for ways to find affordable insurance policies. Because of it, giving more muscles to your money might be one of your top priorities. Fortunately, there are ways you can use to enjoy your current coverage at a reduced rate. In this issue, we are going to discuss six stress-free ways to lock in to your desired premium rates.
Use comparison-shopping
We have been telling you ever since about comparison-shopping, and if you aren’t sold out by this idea yet, now is the right time to consider this. You will be amazed over the number of cheap insurance quotes that you can obtain free of charge on the Internet just a click of a button. Over the years, millions of people have realized that purchasing insurance online will save them money. If your current insurer is not giving you any special rates even if you were with them ever since and never filed a single insurance accident claim, I suggest you head on to some comparison shopping websites, and look for another potential insurer that rewards you for being a good driver. All you need to do is to fill out an online form, which will be sent to different insurance companies all at the same time. The best way to approach this method is to collect at least three different quotes and compare the products that offer the best value for your money.
Increasing your deductible
This is yet another method to acquire reasonable insurance rates. Deductible is the amount you pay from your pocket before your insurer begins to pay the coverage amount stated in your policy. In theory, the more money you are willing to pay yourself, the higher the discounts would be. However, this is only advisable for people who rarely get into an accident. If you are one of them, increasing your deductible from $250-$500 will save you at least 30% off your current premium rates. But then again, you just have to make sure that the deductible you set during your insurance purchase is realistic and that you can afford to pay it during emergency cases.
Dropping collision coverage
Collision coverage is one of the many forms of insurance products that are offered by a majority of insurance companies. If you are unsure of what particular type of policy you are using right now, it pays to contact your insurance agent and have your account reviewed. Alternatively, you can always review your insurance documents again and see to it what type of insurance you have.
You do not need collision coverage all the time. If you are saving money, you may want to drop collision in favor of other forms of coverage. If your car’s worth is under $1000, you may choose to drop collision or comprehensive coverage off your chart. In case of accident, what you are going to receive is the cash value of your vehicle. That means paying for collision coverage for a possession with a lesser value is an absolute overkill. What you can do instead is to look for liability only coverage, and put the money you save in a bank ready to replace your old vehicle or as a down payment for a new vehicle.
Observe your teen driver
Teen drivers are considered as high-risk prospects. This means that if you have a teen driver at home expect nothing less but an unusual surge of your insurance rates. However, this situation is only temporary until such time he or she reaches a certain age. Most insurance companies consider 25 years old as the right age.
Having a good credit score/rating
The way you handle your financial obligations are reflected in your credit score. Insurance companies are known to evaluate this variable as well. According to their studies, people with high credit scores are the ones who have filed the least insurance claims. This means that if your credit score is 650 and above, your insurance company could extend price discounts. Always look for ways to improve your credit score by reevaluating the way you handle your finances.
Choose low profile vehicles
There is nothing wrong if you are eyeing for a sports car. However, if you are looking for ways to save money on your insurance, it is best to stay away from such vehicles. Expensive and luxurious vehicles have become the target of thieves and burglary. Insurance companies will charge you with higher premium rates to hedge up possible costly insurance claims.
