How to save money on auto insurance: Having insurance for your car now a day is a good thing as we cannot tell when we might need it. Mostly people these days don’t get auto-insurance as it is considered as unnecessary monthly bill. But in recent days, anyone can get into mishaps. So it is better to be safe than sorry.
If you are getting auto-insurance for the first time or already have auto-insurance there are some tips you can use to save money on auto-insurance. It is to be noted that auto-insurance cost depend on multiple things like number of cars, car model etc.
Here are some tips to save money on auto insurance
Choosing an insurance company
Best way to get a trusted and tested insurance company is to get suggestions from friends and family who have car-insurance.
In case you don’t have any friends and family who have auto-insurance, you can look for a company yourself. When you are looking for a company yourself, it is better to check out multiple companies.
Auto-insurance company deals are different from company to company. It is better to check multiple companies to find the one that suit you best.
While looking for a company does not just check insurance rates but also their customer service. As companies with better customer service will get you a better deal to go with your budget.
Multi insurance with same company
If you are insured with a company already that suits your budget then it is good to get auto-insurance with the same company. Many companies offer discount on multi policies to one client.
High deductible rate
Deductible rate is the amount one pay before their insurance starts covering the damage cost.
High deductible rate can lower the monthly bill of insurance and it annually saves a lot of money. It is also good for the long run.
But if one is increasing deductible rate then it is better to have emergency supply of that amount in your savings in case unplanned incident occurs.
One way to save money on auto-insurance is to reduce or drop coverage cost on few features. For example to drop collision and comprehensive cost coverage on older or cheaper cars.
Many companies also offer low mileage discount. If a person drives less then there is less chance of incidents hence low insurance rates. These rates are relatively lower than of people driving regularly.
Usage based insurance
If you are a safe driver then this discount is for you.
A device is installed in your car that records your driving methods. If you are a safe driver then discount will be added in your next bill.
Good credit history
Many companies offer lower insurance rates to people with good credit history. This is because people with good credit are likely to file less for claims as compared to people with bad credit.
There are other discounts that some companies offer like being married or good student discount.