4 Actionable Tips for Saving On Auto Insurance

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Owning a car is arguably convenient. You get the freedom and flexibility of moving around and going almost anywhere you want at any time. But don’t forget all that comes at a cost. There are fuel costs, license costs, registration costs, parking fees, taxes, tire replacements, repairs, and maintenance.

And that’s not all. There’s the insurance cost.

Fortunately, the good news is that you can slash down the costs of car insurance. This, in turn, will help to minimize the overall costs of owning a vehicle. In this post, we’ll cover some of the actionable ways you can actually save on your premiums. Read on to learn more.

1. Keep your mileage low

Insurance companies usually factor your vehicle’s mileage when pricing premiums. So, they’ll be curious about it. There are various ways you can reduce your miles. If you usually drive to work every day, use the public transportation systems instead. It’s also reasonable to just cut back on your usual driving habits.

Another way people keep their mileage low is by owning two vehicles. For example, if you have a big sedan or an SUV, supplement it with a smaller car. SUVs are usually fuel guzzlers, meaning they pile up lots of miles with every use.

Even if you have a car with better mileage, don’t drive it more. You want to spread the mileage across two cars or more.

2. Shop Around

This might seem an old tip, but it doesn’t make it less effective. Insurance companies are usually looking for new policyholders. Also, they’ll try everything to snatch you from your current insurer. Well, you can advantage of their discounts and reduced rates to secure yourself an insurance plan.

Before picking the right plan, make sure you’re comparing different insurers for the same coverage. Arc Insurance also notes that premium rates tend to differ by location. While doing so, remember to read the policies and plans. Some companies can offer you a lower rate for the first year only to increase it for the proceeding years.

Also, when shopping, go for an option that offers the most discounts. Some companies offer discounts for safety improvements, such as car alarms, wheel bolts, and tracking devices. You can also get discounts for good driving history, insuring more than one car, and being a loyal customer.

3. Get a Good Credit Score

In this case, you want to start early, at least six months before buying insurance if you have a poor credit score. Most insurance companies use credit details to price their premiums, so a solid credit history can really help. Research shows that people with good credit score usually have fewer claims.

Ensure you’re always on time with bills and strive to keep your credit balances as low as possible. Another tip is to avoid getting more credit than you actually need. Check your credit history every month and make sure there are no errors in your report. Bear in mind that your credit score is one of the things that insurers look at, and it can’t be the only basis for a decision.

4. Increase Your Deductible

Deductibles are what you pay before your policy becomes active. You can simply ask your insurer for high deductibles. How does this work? Higher deductibles will keep your premiums down, meaning your monthly bills will be lower.

For example, you can choose to increase your deductible from $200 to $500. This will reduce your collision and premium rates by about 15 to 20 percent. Some people will also go as high as $1000 to save even more. Just make sure you have enough money set aside for this since you’ll be paying out-of-pocket.

Getting a good rate for auto insurance is something that every car owner wants. You’ll need to put in the effort while searching around for the right plan. Get all the information as clear as possible to learn what discounts apply to you. Also, do not cancel your old plan before the new plan is fully active.