Tips to Help You Save on Your Auto Insurance
Finding the right insurance provider is a hustle for many people. Even when their car insurance policies cost them a considerable sum annually, they’d rather not be bothered to search for a more affordable insurance policy.
The average annual rate for car insurance is currently $900 according to the National Association of Insurance Commissioners. This average figure has been increasing over the years. For example, the average cost of insurance increased by 2.1% in 2012 ($815) from 2011 ($798). The figure is expected to continue to rise as the years go by.
However, there’s good news for you. Car insurance is not a fixed cost. You can lower your auto insurance considerably and save hundreds of dollars in premiums annually.
- Increasing your deductible
You can save on your annual expenditure on your current insurance policy by increasing your deductible. Deductibles are the amount you pay out of your pocket before your insurance policy kicks in. Increasing your deductible will substantially reduce your costs. Increasing your deductible to $500 from $200, for example, will result in a 15% savings in annual costs.
Be very careful with this however. Increasing your deductible means that you’ll increase your out of pocket expenses in case of an accident. You should therefore have some savings set aside to ensure that you’re covered in case of an emergency.
- Join a car pool
Carpooling is a great way to save on fuel and help the environment. However, it can also have the unexpected benefit of reducing your insurance rate. Some insurance companies take note of mileage on the vehicles they insure. Vehicles with higher mileage on them will attract a higher insurance rate. The less you drive the more money you save on all fronts.
- Review your car insurance policy
When you purchase a brand new car by taking out a car loan to pay for it, you will need to take out comprehensive car insurance in addition to collision coverage. Comprehensive car insurance ensures that the car can be repaired or replaced in the event that the car is wrecked before the loan payments are completed.
Once your loan is fully repaid, you can revisit your car insurance policy and save money by exploring other options. You may have more coverage than you actually need and may be able to drop some coverage for an older car model.
- Get a tracking device
With an insurance company such as Progressive auto insurance, you can be awarded for being a careful driver. These companies offer special insurance policies that require drivers to install a wireless device in their cars. This device tracks the driving habits of the client. Information gathered from the device includes the distance travelled, travel times and habits such as driving speed and sudden stopping. According to the insurance company, drivers can save up to 60% in the annual rates by taking advantage of this special policy.
- Maintain good credit
Ensure that you pay your bills on time to maintain a good credit report. Insurance agents check on credit reports when determining the rate you should pay. Having a good credit report could make a significant difference in your insurance rates.