How to Save Money on Car Insurance: The insurance sector is very competitive, so we must be very attentive to contract our policy at the best possible price and with the coverage that best suits our needs. If you have to renew the insurance of the car or you must hire a new one, here are ten tips for you to choose the optimal option.
16 Ways How to Save Money on Car Insurance
First of all, it is essential to carry out market research work. You have to consult the proposals made by the different insurers and compare them in price and coverages. This task that a priori can be laborious, it is not at all thanks to the internet. There are several web pages that perform this operation for us and offer us the result in a matter of seconds.
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2. Renew or cancel
The car insurance contracts are annual. A couple of months before the expiration is recommended to carry out the aforementioned comparison of products to see if there is any better market. If so, you can negotiate with your insurance an improvement of the conditions in the renewal or directly change the company.
3. Ojito with the power and the extras
If you are thinking about buying a new car, you should bear in mind that the type of vehicle (saloon, sports car, off-road vehicle, minivan, etc.), its power and some extras of equipment are factors that can influence the price of the policy. Insurers believe that the more powerful the car, the more risk there is of a mishap on the road.
4. Coverages, the jousts
It is convenient to analyze in each case what are the real needs of the person who hires the insurance. It is absurd to pay more unnecessarily. For example, if the vehicle is several years old and, in addition, it is parked in a garage, an option to lower the price is to dispense with the theft coverage and choose a basic third party insurance.
A couple of months before the expiration of the insurance it is advisable to make a comparison of products to see if it exists in the market any better
5. All risk with the franchise
The full risk coverage is the most expensive, so you can assess the possibility of hiring it with a franchise to lower the price. This means that, in case of having an incident, the insured agrees to pay the part agreed and the company pays the rest. This option is appropriate, for example, for people who use the vehicle little.
6. The importance of experience and the file
One of the risk factors that companies consider is the age of the insured and the age of their driver’s license. The younger the borrower and the fewer years of the card, the higher the insurance price will be. Likewise, companies penalize drivers who have had mishaps or have been sanctioned for traffic infractions. Thus, being an exemplary driver has its bonus.
7. Payment for use
Motorists who use their car very little or meet a series of very specific requirements can find offers among the use-by-use insurances, which are calculated according to the driving habits of the policyholder, the hours at which he travels, the type of road he usually travels or the speed at which he travels.
The younger the borrower and the fewer years of the card, the higher the insurance price will be.
8. Group insurance
Another way to save is to negotiate with the company a reduction in the price for hiring some other insurance such as home, health or life
9. Fractional payment or annuity
In some companies, it is more advantageous to make the payment of the premium in a single annuity than to divide it. Before signing the contract consult these conditions to avoid surprises.
10. Consider higher deductibles for all-risk and collision coverage
If you file a claim under collision or full-risk insurance, the deductible will be the amount of money deducted from your insurance check. Higher deductibles will mean lower premiums. For example, increasing your deductible from $ 250 to $ 500 in collision coverage and against all risks could save you between 15 and 30 percent.
According to the Insurance Information Institute (III), increasing your deductible to $ 1,000 can save you up to 40 percent or more. Make sure you can pay it in case you have to make a claim.
11. Buy a car that is economical to insure
Buying a sports car will not save you money on auto insurance, but you may save if you buy a small SUV. Small SUVs are the cheapest to insure.
12. Ask about car safety discounts
Your insurance agent can inform you about available discounts if your car has certain security options. Many insurance companies offer discounts for having the airbag (airbag), anti-lock braking system (ABS), alarms for the car and more.
13. Ask about other discounts for the car
There are several discounts in the market and they commonly vary depending on the state and the insurance company. Ask your agent to check the available discounts to see if you are missing any of them. A study on Insure.com auto insurance discounts reveals the following savings as the five most important savings:
The most important discounts and average savings nationwide:
- Discount for good student – 16%
- For being married – 14%
- Low number of miles per year- 11%
- Use of the vehicle such as for personal use – 10%
- Have an insurance policy for the home with the same insurance company – 9%
Many car insurers will give you a discount if you hire two or more types of insurance, which are called combined policies. Common policies combined with auto insurance are home insurance, motorcycle insurance, boat insurance and RV insurance.
14. Take advantage of groups with common purposes
There are times when discounts on auto insurance policies are available through groups of important employers, groups of professionals and other organizations.
15. Keep your driver’s record without fines
Fines for traffic infractions, accidents with fault and claims are the driver’s worst enemy in terms of insurance. It may be that you have been astute when comparing and getting the best price and discounts, but crashing your vehicle could mean not having the savings at the time of the renewal of the policy. Keeping your eyes on the route and your hands on the fly could be your best money saving strategy.
16. Consider spying on the way your teen is driving
The programs vary according to the insurer and not all companies offer them. Some “spy” programs use cameras installed inside the car which provide a video and audio of the way your teen drives. The camera turns on when the drives aggressively.
You can also schedule the system to send you an email or text message when your child arrives at a certain address. The savings on your insurance can be between 10 and 15 percent.