How To Go From Expensive To Cheap Car Insurance Without Skimping On Quality

Are you on the hunt for affordable, yet high-quality car insurance? We have compiled a list of the most important factors involved in getting the best bang for your buck when it comes to car insurance. Use this list to see if your current car insurance policy is the best fit for you or if you should search for a new insurance policy.

  • Theft devices

Most new cars come with theft devices already installed. This can get you discounts on your car insurance because it shows insurance providers that you take the safety of your car seriously.

While some theft devices are automatic and some have to be manually turned on with a button, both result in dramatic reductions in the amount you pay for car insurance. In fact, some states even offer car insurance discounts if you implement other safety features in your vehicle, such as window sketching.

  • Usage-based auto insurance devices

If you are a particularly good driver, this could help your wallet. Usage-based auto insurance devices simply plug into your car, track your driving habits and transmit the data to your car insurance company who will then give you discounts based on how well you drive.

  • Multiple car discounts

Most insurance companies offer discount when you insure multiple vehicles- it can even be the same cost to cover two as it is to cover one! Make sure to check with your insurance agent that you are getting the best deal, especially if you have multiple cars to insure.

If you are selling your second car, this tip can still apply to you! After you sell your car, keep it on your insurance policy as liability so you can get the multiple car discount. Some people aren’t aware of how much money insuring multiple cars saves them until they take one car off of their insurance and watch their bill skyrocket!

  • Yearly policies

When purchasing car insurance, be sure to always choose a yearly policy instead of a six month policy. This will allow your rate to remain the same for a minimum of one year, rather than potentially changing every six months when you renew the insurance.

  • Comprehensive storage coverage

If you are going on a trip and won’t be using your car, a great way to save money on your car insurance is to switch to comprehensive storage coverage for this time. This rate will be much less than what you usually pay for car insurance because there is less risk to the car when stored than when on the road.

  • Mileage

The amount of mileage on your car has a direct bearing on the amount of money that you pay for car insurance. Be sure to check your mileage closely and frequently so that you can accurately answer when your insurance agent asks how many miles per day your drive to work is. There is usually a certain “miles to work” break-off that can affect your insurance rate.

  • Group discounts

Did you know that insurance companies offer discounts for members who are affiliated with certain organizations, such as credit unions or college sororities? Some companies even offer a discount for simply having a credit card.

Researching which group discounts are offered by your insurance company could potentially save you quite a bit on car insurance.

  • EFT payments

Many car insurance companies are now offering no fees associated with payments if they are made electronically. It is typical for companies to charge up to $5 when their members pay via email. These charges can add up when you are paying them every month, so look into EFT payment options.

  • Comprehensive, Liability, Medical payment or Collision; you better lower all of them

If you look into lowering any of these coverages by increasing your car insurance deductible, you could end up saving quite a bit of money overall.

Comprehensive and Collision coverages are the first to consider lowering because most vehicles covered by bank loans have a deductible of up to $1000. Consider lowering your liability and medical coverages only if you are having difficulty paying your premium.

  • Defensive driving courses

Depending on the state that you live in, some insurance companies offer car insurance discounts for drivers that attend defensive driving courses. Contact your state insurance commissioner or insurance company to see if you qualify.

  • Combining policies

If you get your auto and home or renter’s insurance policies from the same company, most companies will give you an overall discount of anywhere from 5-20%.

  • Credit rating

If you maintain a good credit score, the chances that you will have cheap car insurance increase. If you have notoriously poor credit, we suggest finding a car insurance company that does not do credit checks.

  • Teenage drivers

Insuring teenage drivers can be incredibly expensive. Make sure to education your teenagers on road safety and the importance of keeping up good grades. Some insurance companies offer discounts if you submit a good report card to them every semester.

  • Rental car coverage

If you have a fairly new vehicle and pay for comprehensive and collision insurance, skip the extra rental car coverage! Unless your vehicle is only worth a couple thousand dollars, your insurance will cover you as a driver whether you are driving your vehicle or a rental car.

It is a good idea to contact your state insurance commissioner if you are in a high-risk category. Those in high-risk categories tend to struggle to get good insurance or are unable to afford the high premiums.

Every state has insurance specifically for high-risk drivers who may get turned down from other insurance companies. They may not offer the ideal coverage, but it can be a great tool to use while you improve your driving record.

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