Cut the Cost of Your Car Insurance in A Smart Way

by Guest

With the gradual rise in car insurance rates, more and more consumers are opting for ways to reduce their auto insurance costs. Make sure you ask your insurer to provide you with discounted rates. Here are some simple tips that can help you lower down your insurance cost.

Hunt for discounts

Car insurance companies frequently offer myriad forms of discounts to the consumers, which comprise:

  • Multiple policy discounts: Offered if more than one is taken from the same insurance company.
  • Multiple car discounts: You can avail this if you have insured more than one car with the same insurer.
  • Safety measure discounts: If your car is well equipped with anti-theft devices and other associated safety equipments, you might qualify for good discounts.
  • Defensive driving course discounts: You can often lower your premium rate if you enroll in a defensive driving course.

Go for a Cheaper Car

If you buy a less expensive car, it is easier for you to get insurance at a lower rate. The simple reason behind this is the repairing costs for these vehicles are usually quite less than the flashy or costly cars.

Increase Your Deductible

Before you apply for car insurance, determine how much your deductible will be. This denotes the amount that you would have to pay in the event of an accident. If the accident results in damages that require more than your deductible, it will be paid by your insurer. So, if you have a higher deductible, you are subsequently rewarded with a lower premium rate.

Move to a suburban Location

If you live in a downtown area, your auto insurance premium would be high since these areas are usually accident-prone areas. If you move to a suburban location, the probability of theft and accidents become less and this helps reduce your auto insurance costs.

Opt for Annual Premium Payments

Your premium rate can be significantly lowered if you make yearly payments rather than payments on a monthly basis.

Drive in a responsible and cautious way

It is essential for you to be a good driver when it comes to lowering your insurance rates. A bad driving history can lead to problems in this aspect. Road mishaps and driving under the influence are things that you should stay away from. If such events are informed to your insurer, your insurance rate might increase without prior notice.

Pay your bills on time

Making timely payment helps you maintain a good credit record. Subsequently you might qualify for a lower premium rate for your car insurance. Conversely, if you decide to consolidate your debts, it might not be a good time to buy a car insurance policy.

These simple tips will certainly help you reduce your premium rate to a considerable extent.

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Guy G. April 11, 2010 at 5:23 pm

You are so right about moving to a suburban location. I don’t think that most people would move just to get lower rates, but it is interesting to note that the denser the traffic in your area, the higher the rates. Mine almost doubled when I moved from Blenheim, ON CA (lived on my parents farm) to Barrie, ON CA (north of Toronto and has about 125,000 people).
Anyway, thanks for the tips on budgeting for my car insurance. I think there’s a couple of others I might be able to look into.

.-= Guy G.´s last blog ..The Mind/Money Equation – Tips on Budgeting =-.

Bucksome April 11, 2010 at 5:36 pm

That’s a huge increase, Guy. Glad the article gave you some ideas. Thanks for commenting and hope to see you back.

donald September 1, 2010 at 11:19 pm

The exact opposite happened in my case. I cut down on traveling and shifted much closer to work. When I brought this to the notice of my insurance company, I started getting a low mileage discount!

Kay Lynn September 4, 2010 at 6:05 am

Donald, I agree that you save with lower regular mileage. I live close to work now, but my son drives 20 miles each way.

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