Life experience is something that pays off in different ways. It is a long journey during which you are facing a number of problems and looking for solutions. No matter what you’re dealing with, you must begin as a complete novice and become an expert gradually. The same holds true for driving skills.
The longer you are behind the wheel, the more driving experience you gain. That experience comes in handy when it comes to auto insurance. Its cost goes down as you get older and gain experience. You will be receiving experience credits over time, thereby reducing your premiums. Of course, you are supposed to have a good driving record all the while.
Tips to Cut Auto Insurance Costs
Get Multiple Quotes
Before doing anything else, try to get quotes from various insurance companies. Do it once a year. That will help you get the best deal.
Why you get ripped off over and over again by the same carrier? Do not purchase car insurance without online comparison shopping. There are many online tools that allow you to compare auto insurance rates and get multiple quotes in a matter of minutes. You can do it for several hypothetical drivers.
Once you start shopping around, you’ll be surprised at how much car insurance rates vary. For an identical insurance policy and the same level of coverage, the quotes can range from $500 up to $1,500 a month. This makes a big difference.
Consider Using An Insurance Broker
It is always a good idea to work with an insurance broker. As an insurance expert, a broker can assist you in finding the most affordable insurance rates.
Brokers can provide expert advice, make sure a certain coverage meets all the insurance requirements, help clients compare multiple quotes, and much more. They can also be your advocate and deal with an insurance company on your behalf. Of course, these services are not free of charge. But it will be worth it in the long run.
Combine a Few Policies
Do you have a few insurance policies? If so, consider combining them with a single insurance carrier. Why? First, this can make your finances simpler. It’s much easier to work with one insurance company than dealing with multiple carriers at a time. Second, you’ll get a car insurance discount. It’s a good opportunity for experienced drivers to qualify for discounts and benefits.
Claim Your Discounts
Insurance companies offer a variety of discounts all year round. That’s how they try to grab the attention of potential customers. Claim as many discounts as possible and take advantage of them.
Here are the most popular car insurance discounts that can save you money:
- Multipolicy Discount
- Multicar Discount
- Safe Driver Discount
- Safe Vehicle Discount
- Good Student Discount
- Accident-Free Discount
- Federal Employee Discount
- Military Discount
- New Vehicle Discount
- Homeowner Discount
- 25 and Older Discount
- Retiree Discount
By getting some of these amazing discounts, you can save up to 50 percent on car insurance. Get in touch with your agent or insurance carrier to review all the possible savings and see if there’s any additional discount you are entitled to.
Raise Your Deductible
Use coverage to your advantage by adjusting the deductible. For instance, you’ll be able to save money on comprehensive and collision by increasing your deductible. This amount is not covered by insurance companies when they’re paying for repairs.
Let’s say you have a $200 deductible and the repair bill is $1000. The insurer will have to pay out $800. This deductible is too low, though. Why set it at $200 if you’re capable of handling an $800 loss? You are just purchasing auto insurance you do not need.
This raises the question: How much can I save by increasing my deductible? It’s estimated that you can save around $200 (or nearly 10%) a year by increasing your deductible from 500 to 1,000 dollars. This may vary widely, so your best choice would be to consult your carrier.
Consider Investing in Driver Training
As mentioned earlier, auto insurance is more costly for young and new drivers with little or no driving experience. Same goes for those who have no insurance or driving history. That is why it’s worth investing in driving training.
It can qualify first-time drivers for extra car insurance savings. But it’s not only about saving money. Upon completing a traffic school course, these people will establish some good driving habits and become better drivers. Driver training, especially defensive driving course, can also help experienced drivers save money. By completing such a course, they can qualify for certain insurance discounts.
Choose Drivers and Cars Wisely
Think twice before adding someone to your policy as an occasional driver. That can dramatically affect your premiums. Including high-risk, new, or inexperienced drivers on your policy is going to raise your rates.
Buying a new car? Be sure to choose one that is not expensive to insure. Vehicles that come at lower price points – like small SUVs and minivans – are inexpensive to insure compared to flashy and pricey cars. Different models have different insurance rates. Take the time to check all the rates available for the model you intend to buy. It’s worth the hassle.
Whether auto, life, or health, insurance can protect you against unacceptable losses you cannot compensate financially. It’s a necessary evil you can’t avoid. Yet you can find quite a lot of ways to save on it.
Insurance companies regard the age as one of the most significant factors when setting a premium and determining how much to charge someone. This factor can help you get some notable discounts. Moreover, you will pay lower rates than your younger counterparts.
Lastly, it should be pointed out that experience is not always an advantageous factor to insurers. This is especially true for seniors. It will start costing you, as your rates will start climbing when you reach 65. That will make you fall into a risky class, as is the case with teenagers.