Auto insurance may not be appreciated until it is needed. When it’s time for claims, that’s when you will realize it’s not really a nuisance after all. Yes it can be expensive and may take up a large crunch of your savings, there’s no doubt auto insurance is worth it. The good news is, there are ways to reduce the cost of auto insurance and still enjoy all the benefits when it’s time for claims. Below are top 10 ways to save on auto insurance.
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Use one insurance policy
Having multiple insurance policies from different companies will keep things unorganized and more expensive for you. This is because there are certain things you can combine with the different policies to avoid paying double rates. Also, some insurance companies offer discounts to individuals with more than one policy with them. This is a great way to minimize your expenses on insurance.
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Adjusting your deductible
Generally, the value of your deductible will determine how much premium you pay for auto insurance. The premium rate reduces as the deductible increases. You can opt to increase the deductible in order to attract low insurance premiums.
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Consider the type of car
Insurance companies look at the value of a car before setting up a premium payment plan for the prospective policy holder. You need to consider the type of car you want to insure. Generally, flashy and sport cars are more expensive to insure than normal average priced cars. Cars wit expensive replacement part are also more expensive to insure.
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Get different quotes
It’s not enough to just settle for the first insurance coverage you get with an insurance company. Remember that different companies have their different rates, so it’s important to look at other offers from other insurance companies. That way, you will be able to select the cheapest option that actually meets your needs.
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Consider paying by the mile
Some states offer the option of paying for auto insurance based on your mileage. This is usually cheaper if you don’t use the car often. You can find out if your state offer this auto insurance payment option to reduce your rates.
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Use temporary auto insurance where possible
Some insurance companies offer temporary car insurance options for certain types of cars. If you are leasing a car and want to use it for a very short period of time, there is no need buying a full or comprehensive coverage for the car. Instead, look for a temporary alternative where you can pay premium for the limited amount of time you need the car. This is also applicable to cars used for vacations or any car you want to sell very soon.
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Improve your credit score
Before your premium is determined, insurance firms consider your credit score. They use this information to find out whether you are a good manager. To them, someone who can manage their finance is more likely going to manage insurance risk factors well. Increasing your credit score is a great way to reduce your auto insurance cost. Before you take up a policy, find out how you can improve your credit history.
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Ask for discounts
This is one area where auto insurance companies will keep mute if you don’t ask. There are certain features your car will have to warrant discounts from them. If you have a new vehicle or your car has safety features, some auto insurance firms will offer discounts on your premium rates. Your driving history and your combined insurance policy can also bring in more discounts. So you need to find out what you should have to enjoy certain discounts from your auto insurance coverage.
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Review your coverage
Try to compare your auto insurance existing rates on an annual basis. This can be done easily online too. With the comparison, you will know when your insurance cost has reduced to inform your company or take up another cheaper policy from a different company at the expiration of your current one.
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Drive carefully
One of the long term ways of reducing your insurance cost is to always make sure the risk for your claim doesn’t occur. To do this, you have to drive safely and take the necessary safety precautions. If you don’t make claims for a long time, you can call the insurance company to review your policy and demand for discounts. They will gladly oblige.
The above are some of the best ways to significantly reduce your auto insurance rates. With the right approach, you will discover that the cost of auto insurance is not really high as some people think.