Published on : 11 September 20194 min reading time
Nobody wants to pay more for car insurance that they should be. Of course, car insurance is necessary in almost all states, and even in the states where having it is not a state law, it is nevertheless a very great idea to carry it. However, the key to getting maximum benefit from the car insurance you have without over-extending your wallet to the breaking point is to make sure that you are neither OVER insured nor UNDER insured, and finding where that balance is may be a difficult task. That is, it can be tough if you do not put the necessary research into it.
This article will provide several tips and methods you can use to reduce your car insurance rates while still maintaining sufficient coverage to protect you and your car.
Determine how much you drive per year. Most car insurance policies are written assuming that the driver is going to put 12k to 15k miles per year on their car, but do you drive much less than that? If so, numerous insurance companies offer a low mileage discount if you can truthfully say that you drive less than about 7500 miles per year.
Using your car for business purposes can be a good tax deduction but you will pay for it with your car insurance. Does your employer pay you a car allowance each month? Do they pay you mileage every month? If not, then they have no “vested interest” in your car and you may not have to state that you use it for business to your insurance company, where an additional fee may be added if you tell them you do.
What figures are you using for your various deductibles? Remember, you have a deductible for collision, another one for comprehensive, possibly even another one for fire, and these are not required to be the same amount. The deductible is the amount that you pay out of your wallet if you file a claim. Of course you do not want to make a claim, but notice that you can save a great deal by increasing your deductibles from for example $250 to $500, or from $500 to $1000.
How does your credit report relate with car insurance? Very much these days, since increasingly car insurance companies are starting to apply the information on a customer’s credit report to determine their credit score and adjust their premiums consequently. The insurance companies allege to have statistical evidence that shows that individuals with bad credit scores make more claims. Although there are several consumer advocacy groups that are challenging this finding, some insurers are doing this, so it is in your best interests to watch your credit report and make sure that there are not incorrect entries on it, and that your credit score is as high as it can be so that your premiums can be as low as achievable.
Safeguard your car and keep it protected. Numerous insurers offer additional discounts if your car is equipped with air bags, anti lock brakes, and an alarm system. If those items did not come from the factory installed on your car, it might be a financially wise decision to have them installed if you can get discounts on your insurance as a result.
In all probability the single most significant thing you can do to lower your car insurance is to shop around. Compare rates and policies, both online and offline, but be sure you are actually comparing apples to apples when equating policies, since a great deal may have a $2000 deductible and no theft insurance coverage, which does not make it a deal in the least.