5 ways to save on your auto insurance
Insurance Agent examine Damaged Car and customer filing signature on Report Claim Form process after accident, Traffic Accident and insurance concept.
Having enough car insurance is mandated by the law, and you’re obligated to have at least the minimum coverage. But it’s no doubt an expense that adds to your cost of living. The good news is you can lower the cost of monthly premiums in time for renewal. The following are legit ideas to help you afford the coverages you need:
1. Shop around and compare
Insurance coverages can vary by hundreds of dollars that you don’t want to pay for obvious reasons. It pays to do some research and look into at least three reputable companies that offer premiums at a lower price than what you’re currently paying. Before inquiring, learn a bit more about car insurance so you’ll know what questions to ask company representatives. You can also ask family and friends for referrals on what car insurance company they’re using. Researching can also help you compare costs that will fit your budget.
2. Choose low-cost SR22 filing
Whether you own a car or are a non-owner but using the company vehicle, you will benefit from an SR22 document filing for both categories. You can get an SR22 form filed along with your full coverage if you’re a car owner, or liability insurance if you’re only borrowing someone else’s car. In some states, it costs around USD$25, but SR22 Savings can go as low as USD$15 in California and USD$20 in Arizona. Considering that there’s a fee for filing the document, even a few dollars off can go a long way.
3. Avoid premium raises with a good driving record
Companies use insurance points to determine how much insurance rate you’ll pay. For example, good drivers who can avoid accidents can avoid a raise in their insurance coverage. Major offenses such as a DUI can heavily taint your driving record, and you’ll be paying a higher premium for as long as ten years. Insurance providers will also look into other types of offenses for the past three years of your driving history.
Young girl sitting inside of a car and reading fine papers, looking frustrated.
4. Switch cars if necessary
The type of vehicle you’re driving also affects your coverage rates. Insurance providers may use past claims from drivers who own a specific car model to raise premiums. Sports cars often get higher premiums as they indicate drivers who like to drive fast. Other factors include the car’s likelihood of being stolen, and extra features like a GPS that may cost extra to repair. In short, the more likely it is for a driver to make a claim, the higher the rate.
Consider a more modest type of vehicle in good condition for an economical and safer choice. The only person you need to impress with good financial sensibilities is yourself, as you’re the only one paying for your insurance anyway.
5. Combine multiple policies
Call your insurance company, as they may be offering discounts on more than one policy. If you’re paying for both home insurance and car insurance to two different providers, decide which of the companies to transfer what policy so you can save more money. You can also get lower rates on multiple vehicles and all family members who can drive when you move them into one carrier.
In conclusion
Having enough insurance coverage is beneficial, especially if you get involved in an accident. But that doesn’t mean you always have to pay expensively for it. Remember that insurance companies are only granting higher rates to those with a history of arrests for various types of offenses and car crashes. Any act that warrants you to make claims grants higher premiums. You only need to prove that you’re a safe bet so your monthly premium won’t hurt your budget.