The economic recession is forcing many Americans to cut back on expenses. Unfortunately, auto insurance has not been spared, with many drivers choosing to increase deductibles or avoid renewing their policies at all to save money.
Experts are warning, though, that skimping on a few hundred dollars could lead to thousands more in car repair or liability claims. To avoid these, specialists say that car owners and policyholders should take note of steps to reduce insurance costs.
Safer cars mean lower premiums, they add. Insurance providers prefer motorists who have taken measures to improve their cars’ safety. Automatic seatbelts, Anti-lock brakes, and air bags can help lower premiums significantly, experts say. These and other safety features can convince insurers that the cars a policyholder uses are generally safer and will reduce the risk of accidents and injuries.
Industry experts also explain that safety features can cut the risks of accidents, giving providers better reasons to offer lower insurance premiums. It is just a matter of simple logic, they add. Safer vehicles mean lower chances of accidents, injuries or deaths. In return, this will mean a smaller possibility for insurers to pay out claims.
Anti-theft systems and alarms can also significantly reduce the possibility of a vehicle from being stolen. A smaller chance would equate to lower premiums in the long run. Analysts say that some cars are more prone to theft than others and avoiding these models can cut back premiums dramatically.
Proper vehicle maintenance can also contribute to lower insurance costs, experts contend. Car owners should have their cars checked regularly to ensure that they are in perfect working order. The car’s engine, brake system, tires, lights, electrical systems, batteries, and filters should undergo periodic checks. The oil should also be replaced every three months or 3,000 miles for a safer ride.
Keeping a record of maintenance checks can be useful in asking for special premiums, analysts say. Companies provide lower insurance premiums over time for drivers whose cars are well-maintained.
In addition, experts say that driving safe will definitely lead to lower premiums. Motorists with clean driving records can usually get special rates from their providers. Car insurance companies prefer responsible and cautious drivers, they say. A spotty driving record can mean a history of bad judgments and can ultimately lead to frequent accidents. A clean driving record means that a driver is not prone to vehicular accidents.