by Administrator
6. April 2015 13:29
Buying auto insurance is mandatory for all the drivers. However, people often consider it an additional expense and look for ways to cut the costs on it. There are a number of ways to save; however, you need to be considerate and carefully investigate all the options.
Here are some effective tips to save on your auto insurance policy:
- Raise the deductible: A deductible is the amount of money that you have to pay before your insurance company will pay the claim. Raising the deductible on the insurance plan can lower the amount of monthly premiums that you need to pay.
- Ask for discount: Insurance companies offer various discounts, so it is worth asking for. You can avail discount if you have a clean driving record or have qualified a defensive driving course. You can also be eligible for a discount if you have all your insurances from a single provider. By having combined coverage, you can substantially lower the payments on your car insurance.
- Have auto safety features: You can reduce your auto insurance by installing some safety features such as antilock brakes, seatbelt indicator, airbags, etc. The insurance companies offer discounts for drivers who park their vehicle safely and use anti-theft devices such as hood, fuel cut-off systems, wheel locking, etc.
- Avoid carrying excess coverage: Avoid including coverages that are already available with extended warranties, AAA membership, or lease agreements. These may make your insurance cost go substantially higher.
- Make payments on time: You must understand that missing a payment can lead to its cancellation and you may have to pay higher rates on the new policy. Therefore, avoid late payments and pay some amount to keep the policy active and avoid cancellation.
- Age of primary driver: An older driver gets policy at lower rates, so make sure you choose your primary driver carefully. You can get the policy in the name of a parent or an elder member to save money on your auto insurance.
- Pay premiums in lump sum: Monthly or annual premium installments include service charges every time you make the payment. Making a lump sum payment of the premium can save a lot of money.
- Get multiple quotes: Auto insurance costs may vary greatly from one company to another. Hence, it is advisable that you consult an insurance agency to compare the quotes from multiple sources.
The auto insurance rates depend upon the type of insurance, type of vehicle, its make, and model. Do consult your agent to know how you can save money on your auto insurance.
