Whether or not you think owning an auto insurance policy is an unnecessary expense, it is one of the best investments you can make for yourself and your car. If money is an issue, you shouldn’t worry. Not all auto insurance policies are expensive.
Moreover, you can significantly cut the costs of your auto insurance by following the tips outlined below. After all, who doesn’t want to save some extra money?
What’s the Cost of Auto Insurance?
If you’re not aware, auto insurance premiums are increasing at a fast rate. According to Nerd Wallet’s analysis of auto insurance rates, the average cost of full auto insurance coverage in the US is around $1,592 per year. That’s about $133 a month. And if you’re shopping for a minimum auto insurance policy, the national average cost is $565.
However, it’s important to note that the auto insurance rate you’ll pay is dependent on several factors, such as your driving history, your credit score, and your place of residence.
Here are a few steps you can take to save on auto insurance:
1. Ask for Multi-Car Insurance Policy If you own several vehicles garaged at the same address, then you qualify for a multi-car policy when you insure them with the same insurance provider. The benefit of multi-car insurance policies is that they offer discounts, making them significantly cheaper than filing separately for each vehicle.
For example, if you and your spouse each own a car covered by car insurance from the same company, then you qualify for a multi-car discount. The same also applies if your teenage child owns a car. However, they have to prove they are good students to qualify for the good student discount.
2. Take Advantage of Bundling Insurance Policies Before committing to an insurance company, you need to ask if they offer discounts when you purchase several of their insurance policies. For example, you could opt to purchase their home insurance policy, life insurance policy, and auto insurance policy.
If you do, you could end up qualifying for a discount which you can apply on your auto insurance policy to reduce your annual premium.
3. Look For Better Insurance Rates What’s your car insurance premium today? If you think it’s high and you’re about to renew your policy, then we recommend you shop around for a better car insurance provider. Ask for quotes from other competing insurance providers. You might find an insurance provider with lower premiums and better coverage.
However, remember that cheap isn’t always good. The financial muscle of an insurance provider is also important. So make sure that the insurance provider you choose can pay an insurance claim if you file for one.
4. Drop Coverage You Don’t Need Sometimes insurance providers include items you might not need that will end up increasing your auto insurance premium.
For example, you might find that the insurance policy you’re about to purchase includes car rental coverage and roadside assistance. These are items that you might not need, and it would be better for you if you had them removed.
5. Be a Better and Safe Driver We mentioned that one of the determinants of your car insurance rates is your driving history. In an era where the rate of car accidents is high, safe drivers are in demand. So if you’re the type of driver who pays keen attention as you drive, you’ll be able to avoid car accidents and road violations. And as a result, you’ll be eligible for safe driver discounts, which are usually between the range of 10% to 23%.
6. Improve Your Credit Score It may surprise you when your insurance provider informs you that your credit score will be used to determine your auto insurance premiums. However, it’s for a good reason. There is reason to believe that individuals with great credit scores are responsible people in life. And as a result, it can be assumed that they are less likely to file for insurance claims.
Whether this assumption is true or not, you should try to keep your credit scores as high as possible since they play a significant role in determining your premiums.
7. Try to Remain Claim-Free Drivers who have remained claim-free for the past several years are attractive to insurance providers. So, if you happen to be a driver in this category, you should take full advantage of
your status and request a discount.
Your insurance provider will want to retain you as a client and is likely to honor your request and offer you a discount.
8. Avoid Monthly Payments It has become a tradition for many companies across different industries to offer their customer base discounts if they pay for services in full or in two six-month installments. The same case applies to insurance providers. Check whether your insurance provider offers discounts when you avoid monthly payments.
On top of that, you’ll also avoid the additional charges involved with monthly payments.
9. Increase Your Deductibles Generally, the higher your deductibles, the lower your auto insurance premium will be. However, you should always make sure to check whether your deductibles can impact your
premiums. We recommend that you carefully consider your options before deciding to increase your deductibles. And this is because in case you’re involved in an accident, you’ll have to pay that deductible from your pocket.
Therefore, we recommend that you only consider this option if you’re a safe driver and have a healthy amount of savings in your emergency savings fund.
10. Talk to Your Insurance Agent This tip is a no-brainer. An insurance agent with your best interests at heart will inform you of any other discounts you can take advantage of that we haven’t featured on our list. They could also alert you to any special offers or discounts available to members of unique groups such as military personnel. The advice and insight an insurance agent offers are invaluable since they save you time and money.
So, if you have any further questions about auto insurance policies and their rates, visit our website via this link https://sanangelo-insurance.com/ and get in touch with us.
San Angelo Insurance
1102 N Chadbourne
San Angelo Texas 76903
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