Auto insurance is definitely one of the most useful types of insurance but vehicle insurance premiums can often cause car owners to think twice about getting car insurance. Buying car insurance doesn’t have to be expensive if you know about various discounts and other ways you can get a cheaper quote. The following paragraphs will elaborate on some simple yet effective ways to save money on auto insurance.
Know Insurance Prices before Buying Your Car
Most people buy auto insurance after they have bought a car and this is by far the biggest insurance mistake. Your car’s model number, make and value are some of the main factors taken into consideration by vehicle insurance companies before you are given a quote and as a general rule if you have paid a lot of your car then you will pay a lot of your insurance too.
While buying a car you should look for a car that has safety features instead of cool features since safety features like air bags, theft alarm and automatic seatbelts can save you up to 20% on insurance premiums. You should also try to buy a certified green car or a safe car since insurance companies give discounts on premiums of safe and green cars.
Increase the Deductible Amount
The standard deductible amount on auto insurance policies is 20 / 80 which means that you have to pay 20% at the time of a claim and the insurance company pays 80%. If you are interested in saving money on the premium then you should consider the option of increasing your deductibles. By increasing your deductible amount to 50% you can save up to 30% on car insurance premiums. You should keep in mind that when you increase the deductible amount you will need to pay that much for repairs while filing a claim so you should increase the deductible amount only if you plan to keep that much money aside.
Forgo Collision and Comprehensive Cover on Old Cars
If you have an old car then you should consider forgoing collision cover and comprehensive cover. Although these two covers are very beneficial for new cars they are almost worthless for old cars since the amount paid for old totaled cars is usually very less. In order to calculate if you should take these two covers you should add up the two premiums and then multiply the total amount by 10. If your car is currently less than the calculated figure then you should forget about comprehensive and collision cover.
Work On Your Credit Score
The credit score is one of the main factors that is taken into account while your vehicle insurance premium is calculated. If you want to pay a low premium then you should consider improving your credit score by paying your bills on time and reducing debt.
Opt for Discounts
There are many discounts offered by auto insurance companies and chances are that you are eligible for at least 2 of these discounts. Depending on the way you drive you can get a discount for driving safely or driving under a specified mileage. You can also get discounts for owning safe cars or green cars that are certified by the required authority. Students can get discounts for getting good grades, joining clubs or for joining driving classes.