Depending on several factors, including car model, driving history, age and the place where you live, the insurance costs can rise to several thousand dollars per year. It is important for drivers to know how can they lower or keep costs under control. The most effective ways are:
- Bundling multiple insurance services. A person can easily bundle car insurance with homeowners/renters/condo insurance and earn a valuable discount. When completing online questionnaires, the user is asked if he owns the home/apartment where he/she lives. If the user owns it, he will be provided with a bundle option. In some cases, a person can save as much as 20% simply by bundling coverage.
- Purchasing coverage for multiple vehicles under the same contract. Covering multiple vehicles under the same insurer will also be financially rewarding. Multi-vehicle plans also provide a discount. The value of the discount is directly proportional to the number of insured vehicles.
- Set higher deductible levels. It is up to the policyholder to set deductibles. The usually recommended value is
$500, for both comprehensive and collision coverage. However, the policyholder can choose higher values and lower the overall premiums.
- Avoid keeping full-coverage on older cars. If the car is older than 10 years, keeping full coverage is likely to make the owner overpay. Since a car's value diminishes over time, keeping full coverage for cars older than 5-6 years can lead to unnecessary costs.
- Avoid committing traffic violations. Whenever a person tries to obtain online quotes, he will be asked for claims and traffic violations in the recent 3-5 years. Traffic violations and accidents will not only increase premiums but can also determine a carrier to consider a client "high-risk" driver and eventually, drop him.
- Consider a car's safety rating before buying it. Look for annual crash-test ratings and NHTSA safety rankings. A safe car is cheaper and easier to insure.
- Install extra safety and anti-theft devices. Investing in a car's safety will be greatly appreciated by insurance companies. Drivers can qualify for several discounts. Furthermore, installing car recovery systems will lower the comprehensive component of the premium.
- Graduate a defensive driving course. The client will improve his driving skills and will get a discount. Many online questionnaires ask drivers (especially the young ones) if they have participated in courses provided by the local DMV or they are willing to participate in defensive driving classes.
- Periodically compare online car insurance quotes. It is recommended to get car insurance quotes at least once every 6 months and check the average premium costs. Being permanently aware of the average costs will help drivers decide if they stay with the same carrier upon renewal or not.
- Pay-in-full. Paying for the whole coverage period will help drivers save around 10% on their insurance. Use online quotes and see how much it can be saved by paying for everything in advance.
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