Personal Auto Insurance is one of the costliest purchases that consumers hope to never use. While it’s always important to buy the right coverage, it costs a lot more to insure a brand-new car than the older model you are replacing.
With mandatory vehicle insurance laws now applicable in most of the country, personal auto insurance premiums have become a standard part of nearly every family’s household budget. But that doesn’t mean you have to pay more for it.
Here are some helpful tips on how to keep your premiums in line without taking on unnecessary risks.
Choose the Right Deductible
In general, the higher the deductible, the lower your premium and the other way around. Many people don’t understand this simple way to save money on personal auto insurance. Just be sure to set your deductible to a reasonable amount that you could easily come up with if a claim needs to be filed. You can save up to 40% of your premium that way.
Report Reduced Mileage
A major cost component in personal auto insurance is miles driven per year. The average is about 12,000 but most insurance companies give a discount to those who drive less than 7500 miles a year. If you take a bus instead of driving to work, your premium will go down. Your reduced mileage could cut 5 to 10 percent off your premiums.
Review the Coverage
You don’t need collision coverage on older cars. Claims are limited to “book” value, so you’re not likely to get much anyway if your car is older. A good rule to follow is to dump collision when the annual premium reaches 10 percent of your car’s value. Also, if you have a spare car that you can use while your vehicle is being repaired, you don’t need to pay for rental-reimbursement coverage. Dump roadside assistance if it’s a part of your new car’s warranty. If you have group health insurance that provide generous coverage you may cut the medical payments coverage of your policy.
Consider bundling
Some insurance providers also offer home and auto. Combining these could save money without touching the coverage in your policy. Also, you can bundle various forms of protection insurance together such as property insurance, business interruption, and some liability into a single plan and save more money.
Get All the Discounts
Insurance companies offer a whole range of discounts that are based on a low-risk lifestyle. If you don’t smoke or drink you me be entitled to a discount. Same goes if you have passed a defensive-driving course. If your car has anti-theft and safety equipment it can lower your premiums as well.
Take Care of Your Credit Score
A growing number of states allow the insurers to consider a person’s credit score when setting the premiums. Ask your insurer if they do that, but first check your credit score. There may be some credit reporting errors you can correct.
So, now you have enough info to significantly lower your auto insurance premium. We can offer you a variety of coverage options based on your specific needs. Also, you can get competitive rates from multiple quality insurance companies by our free instant quote service.