Easy Ways To Lower Your Auto Insurance Premiums
With the rising cost of just about everything, who doesn’t want to find a way to get more affordable car insurance? If you are just learning to drive then taking a certified driver’s education course can be of some benefit in lowering your premiums when you sign on with an insurance company. The company will require a copy of the driver’s education certificate to verify that you did indeed take the course. Check with the DMV to learn more.
Lower Your Deductible
If you take the time to read enough articles about finding affordable car insurance one piece of advice that you will be given over and over again is that you can lower the premiums you pay by increasing your deductible.
For those who do not know what a deductible is, it is the amount of money that you must pay out of pocket when filing a claim before the insurance company will help you out. The higher amount you are willing to foot the bill for in the event of an accident or any type of altercation your vehicle is involved in, the lower will be the money they will charge you in premiums.
Let us look at an example of this. Let’s say that you have a deductible for 500 dollars. One evening it is raining and you run into a tree and damage the front end of your car. When you file a claim with the insurance company you have to pay 500 dollars to your insurance provider before they are willing to pay out any money in order for your vehicle to be repaired.
Why a Deductible?
A deductible is in place in order to reduce any fraudulent claims that the insurance company has to deal with. The logic behind it is this- the more you have to pay out in terms of a deductible the less likely you will be to file a claim. This then makes it possible for your premium to be lower.
According to the Insurance Information Institute, if you decide to raise your deductible from $200 or $300 and bump it up to $500 then this can serve to lower your premium by as much as 15 to 30 percent. If you in turn decide to go even higher and raise your deductible to as much as $1000 then your premium can decrease by as much as 40 percent or in some cases, even more. Be aware however that this applies more to newer cars or cars that are only a few years old as opposed to older vehicles. If your car is at least 10 years old or older then you may able to lower your deductible somewhat but the savings will not be as great.
When it comes to finding the lowest car insurance rates you need to have your wits about you. Not all car insurance companies charge the same premiums. As well, costs can differ depending on the city and/or state you live in.
Read on for some tips as to how to get car insurance that is as low as possible and will not take too big a chunk out of your monthly budget!
1. Purchase your house (or apartment) insurance at the same company that you insure your vehicle with. While it is not necessarily standard across the board, there are many insurance providers that will offer you a 10 percent discount when you place your home and car with them. It is wise to check this out before you commit to anything however.
2. You have probably heard this one many times before but it bears being repeated. When you take out a vehicle insurance policy, raise your deductible. This will help to lower the overall price you pay on your insurance. In particular, collision coverage is very pricey. You might want to raise this aspect of your coverage as soon as possible.
3. Before you buy a car, find out which types are easiest to insure and can net you the lowest car insurance. For example, four door vehicles generally are cheaper to insure than two door vehicles are. Cars that fall into the high risk category will be hard to insure and you will pay a lot because they are deemed racing cars (of a sort). Examples of these include a Porsche or a Corvette. In the same way, trucks are generally more expensive to insure than cars. If you buy a sport utility vehicle (SUV) for example, you can expect to pay high insurance fees, with the exception of the very smallest kinds.
4. Take care not to get into any accidents or have any driving violations. This is easier said than done but for the lowest car insurance rates around it helps to drive as defensively as possible. In most cases if you are involved in an accident with your car, your insurance rates will go up even if it was not your fault. This may not seem fair but it is often the case.
It is not uncommon for an insurance company to offer a five percent discount to a client who has maintained a clean driving record for at least a period of three years. This could increase to a 10 percent discount if you pass the five year mark with no accidents. If that is not an incentive to drive responsibly then what is?!
Affordable car insurance can be yours if you find a way to strike a positive balance between the deductible you pay and the premium you pay. Savings can be yours!