Owning a vehicle comes with a cost. There are many expenses that come with owning a vehicle – the most expensive, but necessary is car insurance. You will be lucky to get one after getting involved in an accident. Having car insurance is a legal requirement. If you are caught driving without it, you will be fined. Not only that, there are penalties and the possibility of being disqualified. However, due to the cost that comes with having insurance, some car owners tend to not get one. There are various ways you can get car insurance without having to drain your bank account. Certainly, you don’t want to spend an extra penny on something you shouldn’t have to. Here are smart ways you can save money on car insurance and still get the coverage you need:
Shop around for options
Different insurance companies offer different policies at different rates. It pays to look around for options.
Research and get at least three quotes. Remember that there are different types of insurance companies – some sell through independent agents, others sell directly to the clients, and still others that sell through their own agents. These companies offer different rates. Ask for recommendations and read online reviews. Be diligent enough to know the company first and what they can offer before committing.
As you do your company research, learn to understand car insurance, too. This way, you will be able to ask appropriate questions to your prospective insurer. They must show that they can be relied on – so trust is important. Remember, these will be the people you will be dealing with if the worst thing happens and you need to make a claim.
Another thing to remember when shopping for car insurance is that the lowest price is not always the “cheapest” option. Look for a company that is reputable and with a long-running history of providing excellent customer service.
Compare insurance costs before buying a vehicle
Some insurance premiums are based on the type of vehicle you own and it’s price, repair costs, safety records, and the probability of theft. There are discounts that insurance companies offer for features that reduce personal injury, car theft, or even for the type of vehicles that are known to be safe.
Increase your deductible
A higher deductible means lower insurance premiums. Deductibles are simply defined as the amount of money you are willing to be responsible for when a claim is made. If you choose this option, make sure you have enough money saved to cover the higher deductible in case an accident happens.
Improve your credit rating
Being able to maintain a good credit rating has a lot of benefits, and that also applies when getting car insurance. It is a big factor when insurance companies decide how much to charge for your auto insurance policy. It has been noted that those with higher credit ratings make fewer claims.
Manage and improve your credit rating by making all loan and credit card payments on time, keeping credit balances below the credit limit, and not opening too many accounts. Check your credit score on a regular basis to ensure that all information is up-to-date and accurate.
Get an insurance bundle and/or choose the same company
There are insurance companies who offer bigger discounts if you purchase more than one insurance policy from them. It could be in the form of home and car insurance, or if you insure two vehicles. Discounts are also offered for long-time and loyal customers. Not all have the same promotions, so it is always better to do your research. Compare prices for a multi-policy discount from the same insurance company with getting your car insurance separately from various companies.
Car insurance can be a complicated subject and not a “one-size-fits-all” proposition. Remember, what works for others may not work for you. So, it is ideal to be more careful when choosing what fits your needs.
If you want to learn more tips on how to save money on car insurance, contact Calcite Credit Union for expert tips.