October 24th, 2014
While there are many ways to secure cheaper car insurance, most revolve around avoiding accidents and installing expensive prevention devices in your car. However, there are a variety of methods that allow you to lower your monthly bill by simply tweaking a small part of your driving habits and insurance details. Here are six ways you can reduce the cost of your auto insurance:
1. Raise deductible
If you are a relatively safe driver and don't make a lot of insurance claims, then raising your deductible can be a good way to lower your overall monthly premiums. A deductible is the amount of money you pay out of pocket before your insurance kicks in and covers any additional costs. If you increase your deductible, then your monthly rate will go down because you are essentially fronting a larger amount of money - money that your provider doesn't have to pay itself. While it may make your expenses greater for a specific accident, over the long run it can lower the total amount of money you are paying.
2. Insure more
If you buy several types of insurance, then your provider is likely to offer a discount for the whole package. This can bring your total car insurance premium down. By having multiple plans and policies, your overall risk is essentially spread out over a larger area, thus minimizing potentially high payouts for insurance claims.
3. Insure less
In some cases it can actually be beneficial to drop certain types of coverage on your vehicle. The cost to insure older cars that have been in previous accidents or that may have little market value could outweigh the amount of coverage you need. If you have a car that is already in below-average condition, then having collision coverage may not be necessary because if damage occurs, your car might not be salvageable anyway. In this instance, your car could be considered totaled and your premiums would likely be higher than the value of the car.
4. Pay upfront
If you have a large insurance bill, then you may opt to pay in installments. However, insurance companies place a higher value on customers who quickly pay upfront, because paying in installments delays the time they actually receive the money. Some providers actually charge extra fees when you pay in installments, which means you could be paying an unnecessary amount of money.
5. Park in the garage
Parking in the driveway or on the street is not as safe as putting your vehicle in the garage. This is because your car is much less likely to get vandalized or stolen, while it also won't be affected by hail when it is parked. Because many insurance policies cover these types of damages, providers will give you a discount if you park in protected, enclosed areas.
6. Take a class
Driver safety courses can be an easy way to lower your insurance bill. They are usually relatively inexpensive and can be completed in a matter of hours. Taking classes shows that you are making a commitment to safety, which insurance companies will reward.