When getting car insurance, many consumers do not shop around and simply pay the bill when it arrives. While this may work for some, a person looking to save money should take the time to research their options and get the most out of their insurance policy. With that being said, here are five tips to cut car insurance costs without missing out on coverage.
Higher deductible: When involved in an accident, a client will have to pay a deductible. Now, most people like to keep it low as an expensive one will be hard to afford. However, for a safe driver, it would be a sound decision to raise the deductible. Instead of paying $500, one could opt for a $2000 deductible and save money in the process. In fact, with this simple step, one can save a couple hundred dollars a year without sacrificing anything.
Less driving: A person who carpools or drives less than most people can save some serious money. When doing this, a driver should tell his or her insurance company; most companies will give a 10-15 percent discount when a person drives less than 5,000 miles a year. Of course, it is up to a motorist to verify that his or her company offers this discount.
Lower coverage: Often, one will drive an inexpensive car that does not need a lot of coverage. Sadly, many carry the same insurance amounts as they did when the vehicle was new. When doing this, a driver will essentially waste his or her money covering a cheap car. To fix this, a motorist should lower his or her amounts to the state minimum.
Classes: When attending a driver’s training class, one can learn how to drive safely and defensively. Furthermore, when attending a course, one can contact their insurance company and enjoy a sizable discount. This is especially beneficial for a motorist who has tickets or accidents on his or her record. Now, the great thing about attending courses is that a driver can attend one if he or she is old or young; in fact, there are classes designed for older folks and some for new drivers. Without a doubt, a class will pay for itself as a driver will enjoy a sharply reduced premium after completing the program.
Multiple policies: Many people have home insurance, renters insurance and car insurance. To save money, a smart consumer should consider combining their policies. Now, most insurance companies will offer a large discount to a customer with multiple policies; luckily, when having more than one policy with the same company, a client will not have to do anything as the insurer will automatically apply the discount.
With these five techniques, a motorist can save money without much effort. Fortunately, most insurance companies will work with their clients to save them money provided the driver has a clean record and is willing to take the necessary steps to save cash.