Driving a car and keeping it maintained has the potential to cost a lot of money over the long-term. So, it can benefit to look at ways to cut costs where possible, such as on a mandatory expense like auto insurance. Here are a few practical steps that have the ability to lower the auto insurance rates:
Get a quote before buying
Calling one or two insurance agents before buying a brand new vehicle can give an early indication of the likely insurance costs. The premiums for insurance can vary significantly with the different makes, models and age of vehicle. If the insurance for a particular vehicle is likely to be too expensive, it may be more practical to look elsewhere.
Revise coverage on old vehicles
For the older car that is free of finance, it may be worth revising the insurance coverage for collision only. This is the type of protection that is required if damage is coursed to a third-party vehicle. In many cases, this simple step can help to make a useful saving on the cost of insurance.
Use a single insurance company
Try to use a single insurance company for multiple policies, such as auto, home, travel, etc. A benefit of this is the ability to gain a multi-line discount, which is usually in the region of 10-15% of the total annual premium.
There are plenty of insurance policies that offer incentives for a lower premium. One of these incentives is a proven record of careful driving, which can include staying out of accidents and avoid speeding. This has the potential to give a further discount on the annual premium of about 5-7.5%. Also, by avoiding any traffic violations over a period of 3 years; it is possible to get a further deduction of costs.
Increase the deductible
A further simple step to control the costs is to increase the deductible amount. This is the first amount paid by the policy holder at the time of making a claim. By increasing the deductible from $250 to $500, there is the potential to make a substantial difference. The deductible can even be increased to an amount like $1,000, which should go a long way to control the insurance premium. But, it is sensible to only raise the deductible to an amount that is affordable, and easily payable in the event of needing to make an insurance claim.