Five Ways to Reduce the Cost of Car Insurance

However, this does not augur well for the car owner, who parts with such big bucks to pay for the service. As much as you need car insurance, there is no reason as to why you should pay for it more than necessary. Here are some of the ways you can use to cut down on the premiums.

• Don’t stick to one company: car insurance premiums can vary greatly from one company to another. It is important to take a little time and call a few companies and you’re likely to get different quotes. Compare what you already have against other quotes and make a wise decision. The time you take to shop around can make a big difference in what you pay for your car’s coverage

• Increase deductibles: Remember, the lower the deductibles, the higher the premium. This implies that if you can increase your deductibles say from $500 to $1000, you are likely to reduce your premium by a significant margin. It has worked for many car owners and you can apply it in your situation as well. 

• Safer cars are less expensive to insure: However, you should be careful not to drive a model that is likely to be stolen or totaled. To avoid such incidences, you can get adequate information by calling Highway Loss Data Institute, or checking online at http://www.iihs.org for more information.

• Eliminate any coverage you don’t need: Review you policy regularly and get regular car insurance quotes to determine any coverage that you may not need such as collision or comprehensive covers. This way you can reduce the amount you pay in premiums. When dropping unneeded coverage, the best way is to drop collision coverage when the premium it generates annually exceeds 10% of the car’s market value. You can get reliable information about your car’s market value from the National Automobile Dealers Association price book.

• Make use of discounts: Many people pay more on car insurance simply because they don’t get the credits they deserve. For instance, if you insure all you vehicles and your home with one company, you can get substantial discount in your premiums. Similarly, installation of advanced airbags, security systems and rearview cameras, can cushion you from paying heavy premiums.

Other ways to help you reduce your car insurance premiums include not smoking, being a good student, and being a safe driver. All these can make you qualify for discounts, which can cut down on what you pay for coverage in the end.