Having the right auto insurance policy for your vehicle is both smart and prudent, but there’s no denying that it can be a significant addition to the expense of driving. The good news for drivers is that depending on several factors, premiums can vary by hundreds of dollars. Whether you’re just starting out with a new car or your existing insurance is up for renewal, you can save a significant amount by reviewing your coverage to make sure that it’s not only in line with your needs, but to also make sure that you’re getting the best deal for your money. We’ve set out some practical steps to help you reduce the amount you pay for your auto insurance policy.
#1. Shop Around for Your Insurance:
Simply renewing your policy with the same insurance provider can be the easier option, but it’s not always the most cost effective. Prices differ between companies, so bear in mind that even if your current insurance provider was once offering the best deal, this might not always be the case a year later when renewal time comes around once again. It’s a good idea to get at least three quotes from different insurance companies, and look into different types of companies, too – for example, some will provide you a quote through an agent, others operate mainly online, whilst certain providers sell over the telephone. It’s also a wise idea to ask friends and relatives for their recommendations, so you’ll know which providers are worth obtaining a quote from first. You can get several quotes from different companies easily using Mychoicecarinsurance.ca.
#2. Compare Quotes Before Buying a Car:
If you’re currently in the market for a new car, then it makes sense to get insurance quotes on vehicles that you’re considering before you part with your money. Auto insurance premiums are based on a number of factors, which include the price of your car, its overall safety record, the likelihood of theft, and the cost of repairs. So, you could end up paying more than you realize for insurance if you don’t look at quotes until after you’ve purchased a vehicle. Getting quotes first will help you decide which cars are the most cost-effective. There are also several things that you can do when purchasing a vehicle to help keep your future insurance premiums down. For example, use the Top Pick Safety ratings tool from the Insurance Institute for Highway Safety (IIHS) to determine which cars are safer and therefore likely cost less to insure. Going for a model with additional safety and anti-theft features, such as GPS tracking, a security system, or a dash cam can also help to keep your premiums down.
#3. Bundle Your Insurance Policies:
Many insurers will offer a discount to customers who purchase two or more different policies from them. So, it might be worth thinking about what else you can insure with the same company in order to save money. For example, if you own your own home, you can save money by going for a home and auto insurance bundle, or if you travel a lot, opt for travel insurance as part of your package to get more for your money. If you have more than one vehicle in your household, it may be worth looking into multi-car policies, which often come at a discounted rate compared to insuring both vehicles with separate policies or companies. However, bear in mind that there are no guarantees, so it’s worth doing your homework first to compare costs for multi-policy discounts from a single insurer with purchasing your insurance separately from the same or different companies.
#4. Look After Your Credit History:
There are many perks and benefits to having a good credit history, including lower costs for auto insurance. Many insurance providers will look into your credit history before giving you a quote and use this in part to determine how much you will pay. Research shows that people who have a solid history of good credit management tend to make fewer auto insurance claims, therefore resulting in them paying lower premiums. To make sure that you’re getting the rewards that you deserve, it’s a wise idea to regularly check your credit score and look for ways to improve it. This could mean paying off a credit card debt, setting up automatic payments for your monthly utility bills to ensure that they are being made on time, or setting money aside to clear off old debts.
#5. Look Out for Other Discounts:
There are many discounts available to drivers looking for the cheapest auto insurance policy, so keep your eye out for any that could be applicable to you. For example, young drivers may be able to take advantage of a cheaper premium by investing in taking a defensive driving course, or if they are a student who only uses their car during school breaks. You may also be eligible for a discount on your premiums if you have not been involved in any accidents or had any traffic violations during a specified period, so speak to potential insurers to find out more. However, bear in mind that discounts don’t always bring your premium down – a company that offers fewer discounts than the rest may still be able to offer you a lower overall price.
#6. Maintain a Good Driving Record:
Last but not least, being a good driver is one of the simplest ways to keep your auto insurance premiums low and decreasing over time. The more years of good driving that you have on your record, the lower your quotes are likely to be. Simply put, the less claims that you make and are made against you, the more likely insurance providers will be to view you as low risk. So, keep driving defensively and carefully, and you’ll reap the benefits financially.
Car insurance is a must for any driver, but it can significantly add to the cost of owning and using a vehicle. We hope these tips helped you to bring the expense down.