Considering the rising prices of gas and other commodities, it’s important to cut down on expenses in every area. That’s why many people are on the lookout for cheaper car insurance. Many factors go into finding a good rate. There are ways to get cheap auto insurance quotes, making them more affordable. Here are five sure fire ways to get cheaper car insurance.
#1 – Live in an Area with Low Crime
When insurance agents calculate your specific premium, they factor in the location of your home, because that is where the car is parked at night. When an agent verifies your address, it’s to determine whether you reside in an area with low or high crime risk. Moving is not always an option, but purchasing or renting a home in a neighborhood with a low crime rate can do a lot to bring you cheaper car insurance rates if it is feasible.
#2 – Install Anti-Theft Devices
Risk is always the main factor when it comes to cheaper car insurance – the lower the level of risk, the lower the premium will be. Installing an alarm, an anti-theft device like a steering wheel lock, or having a service like OnStar or LoJack, will help protect your car against theft or vandalism, making you less of a liability for the insurance company. This small investment is justified by the overall savings in lower monthly insurance rates.
#3 – Increase Your Deductible
Having a higher deductible for collision and/or comprehensive coverage will lower your monthly premiums. The deductible is the amount paid by the vehicle owner that is not covered by the insurance. For example, if the total damages to your vehicle amounted to $3,400, you may have to pay a pre-determined deductible of $500, leaving the insurance company to pay for the remaining $2,900. With a higher deductible, you get lower monthly rates.
#4 – Periodically Review Your Coverage
Sometimes you will discover that your auto insurance policy is excessive. For example, if you had originally chosen med-pay coverage and have since obtained health insurance, you can consider dropping the auto med-pay rider. Health insurance will cover most medical payments, and dropping med-pay will lower the policy value, decreasing your monthly premium. Being over-insured is not a good thing, because you are paying for coverage that will likely never get used.
#5 – Consolidate Your Policies
Bringing all of your insurance needs to the same company can make you eligible for what are called “bundling” discounts, giving you the cheaper car insurance you’ve been looking for. It’s very easy to take advantage of this technique, and you will likely get reduced rates on all of your insurance types, not just the car insurance. Many companies offer auto, life, homeowner’s, and even health insurance. Bundle policies for a bulk discount.
These days, it’s important to save money wherever possible. That is why getting cheaper car insurance is so important. Lowering the monthly premium will allow more money to be spent in other areas, while still allowing you to have the coverage you need. You might find this article about saving money on cheap car insurance for young drivers useful.