8 Ways to Save on Auto Insurance
Auto insurance proves to be a costly affair that many owners dread to bear. However, we have come up with 8 tips to save on your insurance and many if not all of them will apply to you.
- Shop around
There are hundreds of companies out there offering affordable insurance policies. Many of them charge different premiums for the same amount of coverage. If your tight schedule keeps you from dealing with more than one insurance company, use an online insurance aggregator which will have deals from the leading insurance carriers.
- Watch your credit
Insurance companies use credit scores to determine insurance premiums. If you pay your bills on time and have not defaulted on anything you do not have to worry. If your credit score is higher than normal or has inaccurate information, you will end up paying almost twice as much for insurance coverage. If you have been denied credit within the past 30 days, you are eligible to receive your credit report for free. There are also credit monitoring services which can monitor your credit for a monthly fee.
- Increase your deductible
Deductible refers to the amount a car owner shares with the insurance company while making a claim. This sum is inversely proportionate to the premium amount, which means if you increase your deductible from $250 to $500, your annual premium can be reduced as much as 20% in some cases.
- Keep your car parked in a garage
Parking your car in your garage at home can reduce theft and vandalism. For this reason, auto insurance companies reward you with lower insurance premiums.
- Keep your driving record clean and up-to-date
Drive safe. Traffic accidents, driving violations, drunk-driving convictions, etc. will cause your insurance premiums to rise. If you do in fact have any of these, make sure to take care of them and hire an attorney if needed to get them off of your driving record. Keep up to date vehicle records.
- Car Alarm / Safety Features
Installation of security and safety devices like car-alarm, tracking system, anti-lock brakes, automatic seat belts and airbags in your car serve dual purposes. They make your car less prone to theft and attract discounts from auto insurance companies.
- Get a car least likely to get stolen
Flashy and sleek car models are every owner's dream but often attract the attention of destructive and malicious minds. Where as a car with a less glamorous exterior is unlikely to be stolen or vandalized and insurance companies will offer lower premiums.
- Discounts for groups and members
Members of the American Automobile Association (AAA) save millions annually on their auto insurance as a group just by giving their membership information when buying their auto insurance. There are many other established professional associations you may be a part of and can enjoy discounts on your insurance plans.
