Getting a good auto insurance is a smart decision, but there’s no denying that it adds up your monthly budget. Luckily, premiums are likely to vary according to several factors. So you can always explore your options, and choose the insurance that works best for your budget. In case you’re wondering how to start out, here are some practical steps that’ll help you get through.
Shop for the Best Deals
One of the simplest ways to start out is by checking deals from multiple insurance agencies. Get quotes from at least three companies before settling on your final deal. You should also do your own research before asking for quotes. This will make it easier for you to ask informed questions.
Do note that the lowest price may not be the ‘cheapest’ deal as there are other hidden costs along the way. So when you finally make your pick, choose an established company that offers flexible terms and plenty of other perks.
Consider the Insured Declared Value
Insured Declared Value (IDV) is the maximum amount that your motor insurance policy can offer you. This value is calculated by adjusting your car’s market value without the depreciation. To put it simply: it is the amount you’re likely to receive when your car is damaged (beyond any repair), lost or stolen.
Your IDV is coordinated with the premiums and it is likely to increase the cost of your overall monthly premiums. But since it is one of the most relevant aspects of the insurance, try looking for options with a higher IDV.
Go for Higher Deductibles
When you choose higher deductibles on the auto-insurance, you inadvertently reduce the cost of your monthly premium. But before raising the deductible, do make sure that you can afford to pay it during a claim.
Combine Your Policies
If you have several insurance policies, it is always better to consolidate them with a single provider. This will not just simplify your financial hassles but will also come with great discounts.
Cut Down on Optional Insurance for Old Cars
If your old car is 10 times less valuable than its insurance premium, getting a comprehensive coverage won’t save you any money. To check if your car falls under this category, assess its value.
Maintain a Stellar Credit History
Having a good credit history comes with many perks including, lower auto-insurance costs. So it is always better to keep your credit score in check. If you’re sceptical about the score, try checking your credit history every couple of months. Look for discrepancies or errors in your report. Going through your report thoroughly will help you weed out incorrect information, which can affect your score.
Look for Discounts
Car insurance providers offer several discounts. Some of them might seem obvious, like discounts for safe driving. But there are others that might completely surprise you, like discounts for being a student. Here are a couple of discounts you’re likely to get-
- Bundling home and car insurance.
- Having multiple cars.
- Buying a new car.
Before finalising the deal, consult your insurance provider or agent to check if you’re eligible for any additional discounts.
Check for Mileage Discounts
Certain insurance providers are likely to give you discounts if you don’t drive as much. You might be also eligible for these discounts, especially if you carpool to work every day. In case there isn’t any discount, try looking for a plan where you can pay by miles. This is an equally useful way to cut down on premiums.
Look For Good Deals Every Year
Finding an excellent rate for your auto insurance is just the beginning. But you should also compare new options annually to avoid missing out on good deals.
Check for Group Insurance
Certain insurance providers offer reduced rates to individuals who get their insurance from a group plan. These plans are usually available to employees in their professional or alumni network. So if you’re working somewhere, check with your employer to see if they offer something like this.
Opt for Semi-annual Payments
Usually, most car insurance deals come with two payment plans. One of them lets you pay the premium in monthly instalments, while the other comes with a semi-annual term. We’d suggest you to go for the semi-annual plan since it comes with reasonable discounts.
Choose an Affordable Vehicle
If you want to save on premiums, try getting a car that comes with affordable insurance plans. Most insurance providers rate your car according to its price. So an affordably priced SUV is going to have a way lesser premium than a swanky sports car. Sure, having a sports car is great. But before getting it, do check if it’s worth the expensive monthly premiums.
Try a Defensive Driving Course
Another easy way to save some extra bucks on auto insurance is by opting for a defensive driving course. Most insurance agencies offer monthly discounts upon showing proof of your defensive driving course. Also, since these courses help you avoid accidents in the long run, they’ll save you plenty of money in the long run.
If you have a habit of crossing speed limits, it’s time you slow down. Since speeding tickets can rack up your premiums for a couple of years, it is always better to be safe while driving.
While car insurance is indeed important it won’t have to break your bank. So follow these guidelines, explore your options, and compare plans on online comparison websites to find the best deal.