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How To Lower The Costs of Your Car Insurance

Car Insurance is expensive (and getting even more so apparently), so it’s always handy to find out any methods you may have to reduce the costs by even a small amount. Every little helps these days, and an extra dollar in your pocket is much better than an extra dollar in the bank of the insurance company.

• Shop around for your car insurance – there are lots of car insurance companies available, so the best thing to do is to get a few quotes from different ones (at least three) to see which is the best deal.  Don’t be influenced by price alone though. You also need to make sure that the car insurance company you choose is licensed and reputable, they must be financially stable (so that they’ve got enough money to pay out on any claims). Ask your friends and family who they use, check out comparison web sites on the internet or just do a quick search. It’s important that you ask each car insurance company for a quotation for the same thing though, otherwise you cannot make a reasonable comparison. Some car insurance companies use agents, some don’t. Do a little homework and prepare to be surprised at the different quotes you will receive.
• Check out insurance costs on a new car before you buy it. Some cars are more expensive to insure than others, and this is definitely something which you need to bear in mind if you’re in the market for a new motor.  The price of car insurance for each individual model can vary depending on the price it will be replace it, the price it costs to repair it, the likelihood of it being stolen and being involved in an accident. Car insurance companies do have lots of statistics about this sort of thing, and some cars are stolen more, or involved in more accidents than others. It all has a relevance to the price you pay for your car insurance.
• Higher deductibles is another way that you can lower the cost of your car insurance. This can make a substantial saving but then again, you won’t be able to claim as much on your insurance in the event of an accident. If you have a deductible of, say, $200, then you will have to pay the first $200 of any claim and the insurance company will pay the rest. If your deductible is higher, say $500, then the insurance company won’t have to fork out the first $500 of any claim. Increasing your deductible to $1000 could save you around 40% on your car insurance, but then again, you’ll have to fork out the first $1000 for any repairs. It’s all down to you really.
• Reducing the cover of older cars is another way to reduce your car insurance costs. If your car is pretty old and worth less than around 10 times the cost of the premium then it might not be worth forking out for that cover.
• Multiple vehicle insurance can help to reduce the costs of each individual vehicle, and some insurance companies will also offer you a good deal if you take out their home insurance or renters insurance  policy with them too. Check out if your insurance company offers multi-policy deals.
• A good credit record can help too, with lots of other things as well as lowering the costs of your car insurance. Insurance companies are turning to credit history more and more as a means of calculating your car insurance premiums. If you always make your payments on time and maintain a good credit record you’ll be looked upon more favorably.
• Low mileage discounts are another great way of keeping your car insurance costs down. It stands to reason that the further you drive the more chance you have of being involved in an accident.  This can also count for those who are in a car pool for the drive to work, saving you money in more ways that one.
• Discounts  are available for lots of other things too. Be sure to ask about them when you’re sorting out your car insurance, you never know how many you might be eligible for.