Saving Money on Car Insurance
We know that having insurance is a good thing, but we don’t always want to pay the premium. Insurance can be costly and most drivers view themselves as safe drivers. We don’t expect anything bad to happen so we avoid paying the extra cash for insurance.
The reality of the situation is that sooner or later we will all be in some kind of accident. We may get away with many situations in which we could have purchased insurance but we didn’t. This gives us the feeling that we don’t actually need the insurance because nothing bad ever happens.
It only takes one accident to overtake all the savings you’ve accrued skipping out on insurance in the past. Get into the habit of opting into insurance and you never have to worry about making a critical error in the future.
Just because of you opt-in for insurance whenever you can, doesn’t mean you have to pay full price. Here are our tips on saving money on insurance.
Shop around for your car insurance.
Every insurance provider is different. That’s why it’s important to shop around before accepting the first offer you receive.
Your best bet is to start by getting quotes from three different companies. Make sure to get quotes from different insurance companies and different types of insurance companies. Some insurance companies sell through agencies and some sell directly to consumers. Ask around, most people you know probably have car insurance so see what they pay and which providers they like.
Before you begin negotiations make sure you are well versed with how insurance works. You can get a firm grasp of the industry by reading the articles leading up to this post. Insurance is important, make sure you negotiate vigorously and with the proper information at hand.
Just because an offer is “cheap” does not mean it’s the lowest coverage. Not all insurance companies are created equal, some have better deals than others. Do your due diligence and chances are you will find a satisfactory deal.
Different Cars Have Different Premiums
Did you know that white cars are more likely to be in an accident and are therefore most costly to insure? Insurance companies largely run on statistics, and statistically white cars will cause the most accidents. To balance their risk, they will likely charge you more depending on the color of your vehicle, or less.
Not only does color matter, but the type of vehicle matters as well. Before you get your heart set on one particular vehicle, compare the insurance costs on a variety of vehicles you are considering. This will give you a good perspective on what will cost you more or less.
Increase Your Deductible
This tactic must be used sparingly. You don’t want to sacrifice too much of your deductible, but if you increase it slightly you can expect to pay less for your insurance.
You need to consult your own personal risk tolerance on this one. A deductible that’s too high may almost defeat the purpose of getting insurance in the first place.
Bundle your insurance and/or stick with the same company.
Many insurers will give you a discount if you purchase two or more types of insurance from them—such as homeowners and auto—or have more than one vehicle insured. Some companies offer a price break to longtime customers.
There are no guarantees so do your homework and compare costs for a multi-policy discount from a single insurer with buying your insurance separately from different companies.
Have A Good Driving Record And Credit Score
If you can prove to your insurance company that you are a safe driver and you pay your bills on times they may be more likely to give you a discount on your insurance. These are negotiations, the more you can show them how statistically you are less likely to be in an accident the better chances you have.
Getting the best price on your car insurance is largely in your hands. It will take a little work, but if you are willing to put in the time you can get some incredibly cheap deals that cover a lot. We at carvoy.com are doing everything we can to make sure our clients get the best deals possible, contact us if we can assist you in any way.