10 Expert Tips for saving Money on Car Insurance

On June 25, 2014

Car insurance is no longer a luxury item to only people who can actually afford to pay for its heavy coverage. Today, each state government has its own policies for every driver that comes or lives in its domain. These policies can vary from one place to another, but the one thing that is common in all these schemes is the fact that the owner has to purchase a car insurance from a reputed dealer. Here are a few tips which will help you to save a lot of money while purchasing your car insurance.

  1. Consolidate Your Policies

Placing your renters or homeowners insurance along with your car insurance in the same company can help you to get great discounts. You can save up to 15% on your auto cover and the best part is that you will have only one company to make all your deals.

  1. Increase Your Deductible

The deductible refers to the amount of money an owner has to pay towards the claim before the car insurance company would pay towards it. Increase the deductible will help you to reduce your premium by 10% to 20%. For example, if you will raise your deductible from $200 to $500, then you will save about 30% on your auto cover.

  1. Get Safety Discounts

 Buying a car with features like airbags, power breaks and automated seat belts will help you to get heavy discounts on auto covers. Most of the insurance companies will give you the benefit for including all these safety features in your car.

  1. Get Security Discounts

Many insurance companies will provide you with heavy sized discounts if your car has features like anti-theft GPS system with alarms and other high tech devices like electronic disabling and automatic locking.

  1. Drop Optional Coverage

 Dropping the extra policies which include the optional coverage can help you to save a lot of money. These policies are not important and are just add on without any major benefits.

  1. Buy a Low Profile Car

Buying a car which is expensive and vulnerable to thefts often costs more to get insured. These cars need high maintenance, hence the auto insurance companies charge large amount of money to insure these cars. So, it’s always to buy a low cost / profile car so that you can insure your car in low cost.

  1. Maintain a Good Credit Rating

Many insurance companies will check your credit ratings and if your credit ratings are good, you might get lower premium offer which will help you to save large bucks without any major problems.

  1. Pay Coverage in Bulk

Paying your auto coverage in bulk will help you to get rid of extra interest rates on the premium. This will help you to save a lot of money in the long run.

  1. Ask For Low Mileage Discounts

If you have maintained a low mileage in the past few months, then you are entitled to avail the low mileage discounts which can vary from 5% to 15% on the total insurance cover. You can use public transport once in a while to maintain a steady mileage.

  1. Compare The Rates

It is highly important to compare the rates quoted by various companies. You can compare the rates and services of different dealers online which will help you to save big and choose the best deal to satisfy all your needs.

Apart from all above tips to be followed while insuring your car, it’s also very important to book practical driving test to avail extra discounts offered by the government on new policies.

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