Car insurance is a requirement for every vehicle on the road in virtually all states in America. It offers protection to a car owner against liability resulting from an accident. At the same time, it assures that the accident victim will recover compensation for damages.
Car insurance takes a significant amount of money from your income, and the cost of premiums can depend on various factors, including driving history, age, type of car, and where you live. While some of these factors could be out of your control, there are things you can do to lower your premiums.
Get Multiple Car Insurance Quotes Online
If you intend to buy a car, you should also consider where to get your insurance policy. Most people turn to big names in the industry, thinking they offer the best dea
ls. While some do, big names almost always don’t guarantee a good deal.
The best idea is to shop around for the best deals. But shopping around doesn’t mean hopping from one agency to another.
You can shop from anywhere if you have an internet connection. But combing the internet for good deals is not simple either. The good news is that you can leverage reliable insurance comparison resources, such as Cheapinsurance.com, to help you compare quotes from various most trusted insurers.
Choose Your Car Wisely
The type of car you buy directly impacts the cost of insurance. If you want to drive a flashy car, you must be prepared to pay higher premiums because expensive cars would cost the insurer more to replace or repair after an accident.
Sometimes almost similar models of cars can attract different premiums based on the car’s features. For example, you could pay lower premiums if you buy a car with advanced driver assist technology compared to another person with a vehicle in the same price range but without advanced safety features.
Avoid Paying Monthly Premiums
Paying insurance in a lump sum for the whole year can cause a significant dent in your wallet. However, the dent will be worth it in the long run because insurers tend to offer discounts to clients that pay in a lump sum.
Car insurance is designed to be paid per year. So when you are paying it monthly, it is like taking a loan from your insurer, which comes with some interest. Paying for your insurance upfront could save up to 20% or more on premiums.
Take Advantage of Your No-Claims Discount
The cost of insurance is dependent on your driving history. If you cause an accident, you are rated a risky driver, which could increase your premiums significantly. On the other hand, you earn a no-claims bonus every year you go accident-free.
A maximum no-claims bonus can save you up to 80% in the cost of premiums if you have approximately eight years of accident-free driving. However, you may need to pay extra premiums to protect your no-claims discount.
Group Multiple Vehicles into One Insurance Cover
If you have several cars in your household, pooling them under one cover could earn you some discounts. So you may need to ask your insurance agent if they have this offer. Insurers allowing this option often allow a specific number of cars in a pool, with five being the maximum in most cases.
Also, all the cars must belong to members of the same household. So, if you share an apartment with friends and each has a car, you do not qualify for this discount.
The cost of insurance will be high irrespective of how you approach it. However, you can lower it by following the tips highlighted in this guide and can offer tips for lowering your insurance claims.