When you have a car, buying auto insurance can be expensive. Depending on your driving habits and where you live, the cost of car insurance could easily top 10 percent of your annual income. Luckily, there are many ways to keep your car insurance costs lower.
For example, if you drive safely, you may qualify for discounted rates or premium discounts available to people who have proven they can afford car insurance based on their income or other factors. To find out if lowering your car insurance costs is right for you, consider these tips: Reduce Your Risk by Reducing Your Risk… of course!
The more careful and risk-averse you are when it comes to driving and other activities that could lead to auto accidents in the first place, the less likely it is that an accident will harm you financially as well. For instance, do not speed excessively or ignore road signs and traffic signals; avoid becoming a frequent driver (and therefore a high-risk driver); never flee from the scene of an accident; always wear your seatbelt; do not carry excessive amounts of cash (and therefore no cash to pay for speeding tickets), etc. Read through our blog post to Lower Your Car Insurance Costs.
Find Discounts and New Car Purchases
If you frequently change cars, you may qualify for discounts that let you purchase new cars at a lower price. There are also certain instances when you may be able to negotiate a discount on car insurance. For example, if you switch car insurance companies, you are entitled to obtain a rate reduction as long as you have kept your driving record clean and not caused any major accidents.
To find out what discounts are available to you, contact your local branch of the state’s department of motor vehicles and ask if you can get a copy of your file.
Keep Your Roads Clean
Driving with a clean record and abiding by all traffic laws is the best way to ensure that you will not have any major accidents and cause any damage to your car. If you keep your car’s interior, tires and undercarriage free of excessive grime, you will not have to shell out as much to have it repaired in the event of an accident.
If you have had very few accidents and have maintained a clean record, you may be able to get a quote with just a one-time premium payment. If you have had a couple of minor accidents in the past but have not done anything else wrong, you may be able to get a quote with a reduced monthly rate that includes a small deductible.
Avoid Unnecessary Collision Damage Protection
While it is true that collision damage coverage helps cover the cost of repairing your car if it is damaged in an accident, it is a good idea to shop around and see if you can get a better deal without the extra protection. Many insurance companies offer discounts if you do not buy the coverage.
Get a Good Car Insurance Company From the Start
If you switch car insurance companies, make sure you do so at the right time. Ideally, you want to switch companies at the time of the year when rates typically fall because then you can get a better deal. Switching companies before you are in an accident or drive too recklessly could also help.
Reduce Non-Collision Charges
If you notice that your car insurance rates are especially high, it could be because the company is passing these costs on to you. Make sure you ask your agent what these non-collision charges are, how much they will cost you, and if you can get them waived.
Don’t Ignore The Basics
It is important to keep your car in good condition and to get regular maintenance done on it. This will help ensure that you have a low repair bill if you cause an accident. It is also a good idea to have your car inspected once a year to make sure that everything is in good working order and that the vehicle is not at risk of any major damage.
All things considered, it makes sense to keep a close eye on your car insurance rates and make adjustments as soon as they start to climb. With the right approach, you should be able to lower your car insurance costs while still staying safe on the road and maintaining a clean record.