Insurance is a must have for all drivers, but can become very expensive depending on your circumstances.
There are numerous practical ways that a driver can save on car insurance, some easier than others. Here are a few ways to keep your insurance policy from breaking the bank.
Increase Your Excess
One of the most well-known ways to save money on car insurance is to increase your excess.
The excess is the out-of-pocket amount that drivers must pay after an accident before your insurance coverage officially begins. Higher insurance premiums typically have lower excesses, which can be beneficial right after a collision. If you don’t mind having higher out-of-pocket costs, then adjusting your excess is a great way to save money.
Before finally settling on an insurance policy, it is always good to shop around. Comparing quotes from multiple insurance companies is a simple and effective way to do this.
Many websites offer tools that allow you to quickly compare multiple quotes by answering basic questions about your driving record, finances, and vehicle. This is far more convenient than scouring multiple websites or calling around.
Keep an Eye on Your Credit Score
Maintaining a high credit score can also help with your insurance costs. A higher FICO score translates to lower monthly costs. Insurance companies consider drivers with lower credit scores to be a greater financial risk.
By maintaining an attractive credit score, you can save a substantial amount of money, for example on your auto insurance in Charleston.
Bundling has become a popular way to save money on car insurance. The majority of insurance companies offer homeowner’s, rental, life, and other various types of insurance.
In an effort to entice buyers to purchase multiple policies, discounts are typically offered to drivers who choose to bundle. Your savings will vary depending on the type of policies you select and various other financial factors.
Lower Mileage, Bigger Savings
Many insurance companies offer low-mileage discounts. In short, the less you drive, the more you can save. In recent years, some companies have offered electronic tracking devices to keep track of speed and mileage. Experts say that installing a tracking device can reduce your premium by up to 60% for good driving habits. Drivers may also receive a discount for carpooling since it reduces mileage.
Inquire About Special Discounts
In an attempt to boost business, many insurance companies offer various discounts. Working for a particular organization or company can oftentimes warrant a discount. Students oftentimes receive lower rates for maintaining good grades or passing a driver’s education course. Long-time customers of a single company may also find themselves eligible for lower rates. The easiest way to learn about these discounts is simply by calling the company directly.
The universe of car insurance is vast and complex. This means that there is no “one-size-fits-all” approach to anything and rates vary from company to company Regardless of this unpredictability, there are practical and reliable ways to radically reduce your insurance costs.
You shouldn’t have to settle for an overpriced policy when owning a car is already expensive enough.