Car insurance helps protect against sudden repair costs for your vehicle after it has been involved in an accident, vandalism, or theft. It also covers medical expenses to treat injuries sustained due to the accident for persons in the car at the time of the accident and the passengers in the colliding vehicle. Like other insurance types, clients must pay a sum of money to purchase automobile coverage, also known as a premium. These premium rates are determined by several factors, including the car’s worth and surrounding risk factors.
Here are some ways you can save money on auto insurance.
- Good Credit Score
Many insurance companies require credit information to make quotes. People with high credit scores have an increased chance of lower premiums because it shows excellent financial standing. Early payment of bills and low credit card balances helps maintain good credit. If you have a less than average score, you can boost it by adopting a new attitude towards repaying loans and utility bills. Keeping old accounts open is also a smart way to improve your credit.
Many carriers offer auto coverage discounts, which are determined based on the car value and risk factors. An expensive car can cost significantly more in insurance premiums than a cheap car. Some companies offer subsidized rates for using the auto-pay feature, a scheduled installment payment plan where the agent deducts a fixed amount over a specific period. Some insurance companies offer college students discounts, while some consider various factors, including driving history and customer loyalty to award subsidized rates.
- Cancel insurance on old or abandoned vehicles
It is advisable to drop auto insurance on old, worn out, or abandoned vehicles because a car that has become worth less than your deductible and premium becomes a liability that must be disposed of. Removing collision and comprehensive coverage on an abandoned vehicle helps save money on car insurance and divert the cost to a newer and frequently used automobile.
- Usage-based insurance
If you aren’t a frequent driver, it may be best to opt for a mileage payment plan where the number of miles per travel determines your premium. Your agent installs a device in your vehicle that helps read, record, and transmit the data to decide your rate. This coverage is not offered by all insurance companies and is only approved in a few states. Do your research to know if it is applicable in your area.
- Compare prices
Different agencies offer significantly varying premiums. It is best to check different quotes for your coverage before deciding on the offer that best suits you. Premium rates from the company with the most affordable policies are usually less than half the price for the most expensive carrier in a state. It is advisable to check through at least three companies to help make an informed decision. You can also check for reviews on some of the popular financial rating sites and customer feedback.
- Purchase your coverages from the same agent
Buying your home, business, health, and auto insurance from the same company helps to save money on car insurance compared to purchasing from a different agent. You may also get discounted rates when you pay to cover more than one vehicle.
Talk to your auto insurer for more information about how to save money. For all of your insurance needs, visit Young Insurance. We are ready to help you find reliable insurance today.