Low cost car insurance is available. Cheap car insurance does exist. Following are some steps that you can take to reduce the cost of your auto insurance policy:
Increase your deductible – Perhaps the simplest of strategies for lowering the cost of your insurance policy; increasing your deductible effectively means that you are “self-insuring” more of your policy.
Change cars – The type of car being insured is a key determinant in calculating the cost that insurers charge for coverage. The same policy for a sports car costs less for a four-door sedan. Similarly, a car with more anti-theft devices or a higher safety rating (anti-lock brakes, airbags, etc.) will cost less to insure than one without. Even the color can make a difference (depending on insurance companies). In general, the less flashy (from body style to engine size), the lower the cost of insurance.
Eliminate unnecessary features – All states have minimum insurance requirements, but there are other features that may be included in your policy (or in a policy quote) that are in excess of the minimum requirements (such as rental car reimbursement). Eliminating these features will inevitably reduce the cost of the policy.Install anti-theft devices – Some insurance companies provide discounts for installing anti-theft devices. You should check with your insurance company or agent before doing so to understand whether this is an important variable in your policy’s cost. Many times this depends on where you live and/or what type of vehicle you drive; geographic areas or vehicles that have high rates of theft will generally benefit more heavily from anti-theft devices.
Combine insurance policies – Insurers may provide discounts on “bundled” insurance packages (i.e. having more than one policy with the insurance company). Bringing your vehicle policy, homeowner’s policy and life insurance policy together with one insurance company may result in a lower rate for that bundle of policies.
Separate insurance policies – In contrast to the recommendation above, it makes sense sometimes to separate insurance policies. For instance separating a teenage child’s insurance policy may increase the cost for that specific policy, but that price increase may be more than offset by savings on other policies (for instance a bundled policy package that the parent carries).
Review your policy annually – Obtain multiple rate quotes on at least an annual basis to ensure that you are receiving the best rate. As your life changes, the insurance industry changes and your current insurance company changes, the cost of your insurance policy will fluctuate as well. Compare car insurance quotes on at least an annual basis to keep your rates as low as possible. Be sure to review your specific policy features to make sure that they are still meeting your needs. If you haven’t been in an accident for years, raising your deductible may be a prudent action.
Low cost car insurance is available. Cheap car insurance does exist. Following are some steps that you can take to reduce the cost of your auto insurance policy:
Increase your deductible – Perhaps the simplest of strategies for lowering the cost of your insurance policy; increasing your deductible effectively means that you are “self-insuring” more of your policy.
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