Car insurance can be a costly purchase that you hope you won’t ever use. Although you must purchase the right coverage, insuring a brand new vehicle can be costlier than an old model. But, there are ways to keep your premium in line without having to take on unnecessary risks. Consider the tips below:
Evaluate your Current Insurance Company’s Rate Every Year
In case you have been using the same insurance company for years, beating their rates can be hard, especially if you never tried filing a claim. Are you seeing rate increase every year although the coverage is still the same? Does your company give some bonuses or perks? You might be missing on great deals that other insurers can offer if you don’t compare rates. So the next time you need to buy car insurance, take the time to explore your options. Find out how you can compare car insurance quotes online.
Choose a Reputable Company
If you want to save money on car insurance, don’t just focus on finding the lowest premium. A number of insurance providers have lower premiums; however, end up costing you more in the end as they lowball loss estimates, compel you to pay more for original equipment replacement parts, or try to cut corners. Some of them may give you a nightmare when making a claim. Picking a top-rated insurance company is paramount to ensure you get what you expect.
Know what Affects your Rates
Your insurance company will compute your rate depending on how risky you are as a driver. They will usually consider the following:
- Your financial situation. In case you fall into a lower income bracket and own an older, unfinanced vehicle, you will be paying a lower monthly premium. But, if you have a higher income and own a newer financed or leased vehicle, you can benefit from higher coverage limits; however, expect to pay more for the premium.
- How you got your vehicle. Your insurance rate will also depend on whether you own, finance, or lease your vehicle. Financed and leased vehicles need to carry full coverage that tends to cost more. In fact, you will want to up your coverage limits for more protection if an accident happens. If you own your car outright, you can benefit tom no collision coverage; however, think about paying for property damage and medical payments.
Other factors that insurance companies will look into when computing your rates include your driving record, whether you live in an urban or rural area, your age and gender, your civil status, as well as how often you drive your vehicle.
Take Advantage of Discounts
Providers of car insurance give a range of modest but worthwhile discounts based on low-risk lifestyles. Some insurers may give you discounts if any of the following is true to your situation:
- You are a student with good grades.
- You are a new driver who has taken a driver-training course.
- You have taken a defensive driving course.
- You are an older driver who has taken a refresher course.
- You invested in safety and anti-theft equipment.