Last Updated on January 29, 2021
If you’re currently shopping for car insurance, you must be aware that your rate can be influenced by some crucial, uncontrollable factors, including your gender, age, and past claims’ record.
It’s also obvious that owning and maintaining a car can be quite costly. However, it doesn’t have to leave your bank account empty. There are actually plenty of things you can do to score a lower rate.
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Evaluate insurance costs before you buy a car
Your insurance rate can be tremendously affected by the year and model of your vehicle. Sure, sporty, luxury, or new cars are more costly to insure than less expensive, more utilitarian, and older ones. However, you could find a surprising difference when comparing the cost to insure similar vehicles.
Avoiding mistakes when buying a new car can save you a lot. So if you want to buy a car and are still choosing between a few models, you should contact your carrier to see the rate required by each vehicle. This could ultimately increase your savings when it’s time to pay your premium.
Get more than one rate quote before committing
Prices differ from one insurance company to another. So shopping around can be rewarding as you can easily save half of the cost. If you want to get a deeper look into the low-priced carriers, visit the National Association of Insurance Commissioners’ website and check out the map that lists regulators in every state.
Also, the consumer buying guide on the site compares insurance premiums across several companies, so check it out too. Unlike what many people may think, scoring a low premium doesn’t always mean sacrificing service quality. There are plenty of lower budget car insurance companies with great service rates.
Go high on deductibles for low budget car insurance
To save big on your rates, you should be willing to give a little with your deductible. For instance, if you go from a 250-dollar to 1,000-dollar deductible, you can save up to 40% on your policy. And then, you can set aside a certain amount of these funds to help you make payments in the case of a claim.
Mind your credit score
Many carriers take credit scores into consideration when calculating rates. You should keep in mind that your credit score can be critical in determining your rate. If you have a bad credit score, you may end up paying up to 50% more.
To maintain a great credit score, make sure to pay your bills on time and regularly check that your history doesn’t include any items that don’t belong to you.
Comprehensive coverage and/or nix collision on older vehicles
You may actually end up paying more for insurance than the car’s worth if your older car has comprehensive and collision coverage. An easy way to figure out whether you should buy the coverage or not is by adding up your comp and collision premium and then multiply it by ten.
If the vehicle is worth less than the result, discard the coverage. Also, you shouldn’t be worried about being left overexposed.
Ask about low-mileage discounts
Policyholders may qualify for many auto insurance discounts but not get them because they have not asked. Many carriers offer discounts to those whose annual mileage is low.
Perhaps you have no commute or a short commute, pay your renewal bill ahead of time, have a bachelor’s degree or more, or work as a police officer or teacher.
Whatever your case, your low mileage can lower your rate with a number of insurance companies. Don’t forget to ask about available discounts.
Ask about group insurance discounts
Policyholders who are members of certain organizations or professions (teachers, engineers, or veterans) often receive discounts from their Insurance companies. To see if you qualify, request a list of these groups from your carrier. After all, qualifying for special discounts is an excellent way to save money on your car insurance policy.
Ask about discounts to cut on budget car insurance
If your car includes certain safety features like motorized seatbelts or anti-theft devices, you could receive some interesting discounts. Some carriers offer reduced rates to senior citizens and brilliant students.
However, don’t focus on discounts alone. Some of the companies that give the best discounts also have the highest rates. Also, when high-priced companies offer you high discounts, you’ll still pay more anyway.
Avoid lapses in coverage
In fact, you can get disqualified from receiving discounts because of a brief lapse in coverage. Lapses in coverage are used against you to boost your premium. So make sure to always pay your insurance bills on time. Also, in case you want to switch carriers, it’s important to wait until the new coverage takes effect before leaving your previous carrier.
Think twice about paying in installments
The majority of companies charge an administration fee to pay in installments. One carrier charged $10 per installment to policyholders who broke up their bill. To avoid this, pay your premium in advance if possible.
Sure, those with small premiums find this charge more significant. But if you’ve got a large premium, you can choose not to pay upfront and rather invest your funds elsewhere, in this case, the installment route may fit your needs better.
