All posts tagged insurance savings

No one like to spend money on car insurance, but it is a necessary evil that everyone must buy into on some level. Every state requires that everyone carries minimum car insurance, but keep in mind that it doesn’t have to break your bank accounts. If you understand certain strategies, you can save money on car insurance. There are five ways to reduce overall car insurance costs.

Compare Quotes

Failure to comparison shop is one of the worst mistakes that most people make. Many people either take the insurance that comes the most recommended to them or claim they can save them the most money. According to a study, many individuals overpay nearly $368 each year on auto insurance. Make sure you get quotes from a lot of different companies and then compare each quote side by side. This way when you are comparing companies like State Farm, Geico, or Anthony Clark Insurance Ltd., you will be able to find the best insurance plan for you and for the best price.

In addition to comparing quotes, keep in mind that auto insurance companies measure risks in several ways. For example, if you move several miles from your current location, the cost of your policy will increase. This is why you must check auto insurance rates every year. In addition, you should comparison shop each time your location, marital status, or traffic violations change. Each factor affects insurance costs, and you will only get a good deal if you find rates that you qualify for.

Discounts

Most insurance companies do not advertise each specific deal that they offer. For example, if your insurance policy includes a college or high school student, find out if your insurer provides discounts for good test scores. Some companies also offer discounts to military officers and to people who have good driving records. Discounts are also offered to individuals who completed a defensive driving class and drivers who have certain safety features in their vehicles.

Bundle the Coverage

Bundling your car insurance coverage with your renter’s or homeowner’s insurance is a simple way to reduce your insurance costs. Most major insurance companies provide this particular discount.

Insurance companies offer a bundle discount so that they customers will not shop around. However, you should always compare rates with your current provider’s rates each year.

Try to Drive Less

The most overlooked discount is the low-mileage discount. Insurance providers calculate their rates based on your chance of having an accident. The low-mileage rates for each insurance company varies, but it is usually between 7,500 to 15,000 miles every year.

Walking, biking, and using public transportation can reduce the miles that you drive every year, which will lower your car insurance rates.

Maintain Good Credit

When insurance companies determine the cost of a premium, employees review a lot of information, such as credit. To boost your credit score, pay off your current bills and debts. These changes will improve your interest rates on loans and will lower your insurance premiums.

Overall, there are many other ways to reduce your insurance costs, such as driving an older car or dropping a coverage. You should never drive a vehicle without auto insurance, and you should never let your coverage lapse.