While car insurance is quite an important necessity and it is required by law, the costs associated with car insurance can sometimes be a little bit of a strain on your finances.
With salary and jobs cuts, Americans now look to cut costs associated with routine fees such as car insurance. While cheap car insurance can be found, it is uncertain whether it would be worth the investment considering the cover provided may be inadequate which will inadvertently defeat the purpose of having insurance.
It is a basic fact that the numerous insurance companies on the market can differ depending on numerous factors. Some insurance companies that apparently provided excellent service when setting up the plan and making payments may turn out to be disappointing when a claim has to be made. Alternatively, an insurance service that is apparently poor may be excellent and compensation for claims.
Thus, when looking for economical insurance plan, it is important to consider the various other aspects and make background checks about the insurance company without simply settling for the cheapest option on the market.
If you are finicky about the services you use and prefer to use an insurance company that is reputed and maintains a certain standard, there are still ways to save with these insurance companies and lower the overall premium. Here are 7 ways to do this without affecting the overall compensation you may receive in the event of an accident:
Consider the value of your deductible
Your deductible is the amount of money that comes out of your pocket when a claim is made. It is quite apparent that the cost of your deductible is inversely proportional to the cost of your claim. Most people simply set a deductible amount initially when signing up and simply forget about it when over the years they could vary the deductible to reduce the insurance premium. If you are a relatively safe driver you might want to consider raising the deductible. This can heavily impact the price of the premium making it a lot more economical. Of course you will have to bear the extra cost in case of an accident, however if you are a safe driver, this shouldn’t be an issue.
Purchase all insurance policies under one company
If you already have insurance for something else, such as health insurance, insuring your car using the same insurance provider would result in a discounted premium. Of course, you may have signed up your other insurance plans with a company who only exclusively deal with that type of insurance, however in most cases, insurance companies usually offer policies for numerous services. There are some people who recommend against this as it would be safer to insure your policies under different companies based on the “don’t have all your eggs in one basket” saying however if you are convinced that your insurance company is the real deal, it is ideal if you use the same insurance company.
Drive with caution
While this may be an overstated fact, your insurance premium will be inevitably affected by how safely you drive. If you have made several insurance claims in the past or have offences such as for speeding, you are liable to have a higher insurance premium. Additionally, once you earn a reputation as a risky driver, it takes years to redeem your status to be considered a safe driver once again.
Consider your vehicle
Another evident fact is that the type of vehicle you have will impact the cost of your premium. The type would include the price as well as the primary purpose of the vehicle such as a family car or a sports car for example. There are also specific cars that have a statistically higher level of “heat” for thieves. These models tend to be more expensive. It would be advisable to steer clear from these cars. These vehicles can be easily found by browsing the net or even simply asking your insurance provider.
Review your policy
Always remember to periodically review your policy as there are numerous alterations you can make to reduce costs. A good time to do this would be when you’re renewing your insurance policy. For example, there may be some costs accounted for that also exist in another insurance plan of yours and thus can be removed which will save you money.
Consider switching insurance providers periodically
Insurance is a highly competitive industry and companies need to keep moving and innovating in order to stay on top. This includes adjusting prices. A year after being with one insurance company, it may not be uncommon to find other insurance companies offering more attractive rates. An ideal place to find various insurance companies and receive quotes would be via the internet. There are websites available that offer comparisons making it easier for you to evaluate the various insurance companies available.
Security mechanisms in your vehicle
Having incorporated systems and equipment for added security which will deter thieves and vandals will also impact your insurance premium. Having a security system will certainly reduce the possibility of your vehicle being stolen or vandalized and thus your insurance cost will be lowered. Your insurance company may not consider these factors as it would mean more money for them; it would be your responsibility to acknowledge these features on your vehicle.
As you can see, there are indeed several ways to acquire a lower cost with your car insurance companies. Even if you are an affluent individual, taking the above steps barely take much effort and thus should be done as it would be money saved.