Most customers try to cut down on their auto insurance costs by doing away with auto insurance altogether. However, that isn’t a wise move at all. On the contrary, it could leave you vulnerable to big unforeseen expenses in the future. It is better to learn how to save on your car insurance, rather than compromising on the coverage itself. Here are some simple tips that can help you save hundreds of dollars on car insurance every year.
- Avoid driving whenever it is possible. You can share cars with friends or colleagues or take public transportation if possible. By driving less, you lower your mileage and that brings down the auto insurance premium as well.
- Follow traffic laws to the T. This is very important. Whether it is texting or distracted driving, not wearing seat belts or driving under influence, speeding or jumping signals, it isn’t good for your profile if you are caught performing a punishable offence. Auto insurance providers would be wary of such individuals too.
- Take care of your credit history. Pay your bills on time, whether it is for utilities or for the credit card. Keep your outstanding debt as low as possible. If your credit score is higher, it shows you in better light and surprisingly that too will help your auto insurance rates to come down.
- Take driving courses especially if you have purchased a car recently. A driving course certification makes you a better driver with greater awareness of traffic rules. By avoiding accidents, you will lower your auto insurance premiums. In fact, with a driving course certification you can claim for a discount from the auto insurance provider.
- Combine your insurance policies by taking them from the same company. You can save hundreds of dollars when you purchase auto insurance from the same company as another family member or when you combine your house insurance with your auto insurance. Some insurance providers offer great incentives too.
- Get good grades at college. Students who get better grades are perceived as more responsible and less reckless. This helps them qualify for discounts on auto insurance premiums.
- Get safety mechanisms installed. Whether it is anti-theft mechanisms or features that provide navigation assistance, it will help you get discounts on auto insurance premium as they make your car safer.
- Shop at least a month before your insurance expires. When you shop you will get a good idea of the existing rates. That way, you will tend to find out what the current insurance costs are. If another provider is offering you a better rate, you can always save money on it.
- Always negotiate for a discount. You shouldn’t blindly renew your policy. If you have had a safe driving year without accidents, violations or claims, make use of it. Negotiate for discounts and invariably when you ask, you will be rewarded.
- Purchase auto insurance online. That way, you will be able to cut down on commissions, saving money for yourself.
