Car insurance is a necessity but it can often be pretty expensive. However, the good news is there are various ways in which you can save money on your auto insurance.
Get started by considering the following methods.
What Affects the Price of Car Insurance?
Firstly, let’s examine what affects the price of car insurance. There are multiple factors at play.
The type of car you drive can raise or lower the cost of insurance. Typically, luxury cars and sports cars are much more expensive to insure compared to family cars like sedans. That’s because the former cars are more likely to be involved in accidents and the repairs cost more.
Your driving habits can also affect the price of your auto insurance. If you have multiple accidents on your driving record, your insurance company will deem you to be a higher risk.
Therefore, your insurance will most likely be higher compared to someone with a clean driving record.
How much you drive also plays a role in the cost of your insurance. If you maintain low mileage, you lower the risk of being involved in a road accident. In turn, your insurance can be cheaper.
Where you live and park your car can affect the insurance price too, as some areas are more prone to theft and vandalism than others.
However, just because all of the above factors can make your insurance higher, it doesn’t mean you can’t find affordable auto insurance. By comparing different car insurance quotes, you can find a great deal.
Now, let’s look at six other ways in which you can save money on your auto insurance.
1. Increase Your Deductible.
As you may know, your deductible is the amount you have to pay after an accident or damage or theft, before your insurer picks up the tab. Typically, deductibles range between $250 and £1,000.
By paying a lower deductible, your annual premium will be higher. On the other hand, the higher your deductible is, the lower your premium will be.
So, it could be worth increasing your deductible to save money.
2. Complete a Defensive Driving Course.
Some insurers provide discounts to drivers who successfully complete defensive driving courses.
By completing a defensive driving course or an accident prevention course, or another similar course, you can become a safer driver.
That means you lower your risk of being involved in a road accident. In turn, that means your insurance company can offer you coverage at a lower cost.
3. Install Anti-Theft Devices.
Another way of reducing the cost of your car insurance is to install anti-theft devices.
Some insurance companies offer significant discounts to drivers who install things like LoJacks and car alarms. In fact, by installing such devices, you could save up to 25%.
However, you should compare the cost of installing such devices with the amount of money you would save on your insurance to discern whether this option is cost-effective.
4. Install a Driver Monitoring Device.
Some insurers provide discounts to drivers who install telemetry devices in their cars. The devices monitor how much you drive, how well you drive, and when you drive; enabling insurance companies to keep track of your driving habits.
Installing telemetry devices is a good option for drivers who drive less than 10,000 miles per year.
5. Bundle Your Insurance Policies.
One great and simple way of lowering the cost of your car insurance is to bundle your various insurance policies together with one insurance company.
When you bundle your home insurance with your auto insurance, for instance, you could make significant savings.
6. Insure Multiple Cars.
Lastly, if your family has multiple cars registered to the same address, you could make substantial savings on your car insurance by insuring all of your cars under the same policy with one insurer.
