How to Save Money on Your Car Insurance – Car insurance companies use various factors to determine your car insurance rate. These factors could include age, driving history, how long you’ve been insured, the kind of car you own, and location.
However, each car insurance company has its own process of measuring these factors which is why it’s important to compare rates for different companies before you buy a car insurance.
So when you know how each car insurance company determines these factors, you can get good coverage without breaking the bank but if you don’t effectively evaluate your car insurance coverage, you may be overpaying and enriching your car insurance company.
In this article, we’ll show you How to Save Money on Your Car Insurance and give you valuable insights on how car insurance prices are determined.
Intuitive Ways to save money on your car insurance
- Quote comparison is highly recommended: as mentioned earlier, each car insurance company determines its own approach to calculating rates, and your own individual rating factors play a significant role. And unless you request a quote from other car insurance companies, you can’t know how much their rate is. We highly recommend that you compare quotes between car insurance companies to determine which company offers the best rate for your desired coverage so that you don’t inadvertently pay too much for coverage.
- Car insurance discounts are your friend: Most car insurance companies offer special discounts to save on your car insurance premium. We recommend you take advantage of all the discounts you’re entitled to. Start by checking your insurer’s discounts page and contact your agent when in doubt to review your possible savings options. Meanwhile, some of the most common car insurance discounts by most companies include:
- Low mileage discount: Just by driving under a predetermined mileage count per year, as specified by your insurer, you might qualify for a discount!
- Bundled policy discount: Most insurance companies offer discounts when customers bundle their car and home insurance together with them. This is definitely a good approach, so you can consider other policies which you can bundle together to save money, consider discussing this with your agent.
- Loyalty discount: Most insurance companies value loyalty so if you’ve been using the same company for a number of years, you might qualify for a loyalty discount. Furthermore, holding consistent coverage over a period of time may also qualify you for a similar discount.
- Profession-based discount: Your profession might qualify you for a discount! Some insurance companies offer discounts to specific professions, for example, teachers.
- Cut out any coverage you don’t need: cutting out any non-essential coverage is highly recommended and might be the simplest solution to saving costs. For instance, if you only had one car when you started your policy, and you included rental car reimbursement, if peradventure you get a second car, it is wise to cut out the unnecessary coverage within your policy to save costs. So routinely checking your policy to see where you might have duplicate or unnecessary coverage is a great idea.
- Cheaper cars are cheaper to insure: The truth is, your vehicle is directly linked to your car insurance premium, especially if you buy collision and comprehensive coverage. So prior to buying your next car, it’s logical to compare car insurance rates for the models you’re considering. Safe and moderately priced vehicles such as small SUVs tend to be cheaper to insure than flashy and expensive cars.
- Update your policy annually: finally, routinely reviewing and updating your car insurance policy might be the wisest way to save on your car insurance and could also help ensure your selected coverage meets your current needs. When you go through any major life changes, such as getting married or moving to a new city, you should definitely review your car insurance policy to reflect your new lifestyle.