Car insurance costs can be a drag, and yet you might think that the only way to make savings is to choose a less comprehensive policy than you are on at the moment, which could leave you exposed to steeper costs if your vehicle is involved in an accident.
The good news is that there are a number of ways to reduce the expense of insuring your car without making compromises, so here are a few tips for budget-conscious motorists to follow.
Compare quotes from multiple insurers
Today it’s easier than ever to play the field and switch to a better value car insurance package when the time to renew arrives.
Sites like CheapInsurance.com offer you the tools to quickly get quotes from competing providers, meaning that there is less of a struggle when it comes to making savings.
Your options can be weighed up not only according to price, but also based on the features that a policy offers. So if you want extras like personal injury cover, but you don’t want to pay over the odds, comparison services are even more appealing.
Take steps to improve your credit score
It might seem strange for your credit score to have an impact on your car insurance costs, but unless you live in California or a small group of other states, this is an unavoidable reality.
The reason for this is that studies have found a link between poor credit history and riskier driving habits, hence why insurers adjust quotes according to this metric.
Thankfully there are a few ways you can improve your credit score, such as by paying off your credit card bills regularly, reducing the amount of debt you have to your name, and using your credit wisely without ever hitting the upper limits of your available balance.
Specifically, choosing to stabilize your finances is not just sensible for securing car insurance savings, but also for boosting your loan eligibility, which could help you get a mortgage, or even secure financing for a new car purchase.
Choose a safer car
Speaking of buying a new car, you might think that up-to-date vehicles which have higher price tags are always going to be more expensive to insure than older, less valuable used cars.
This is not always the case, as you will usually find that insurance on a modern family vehicle is more affordable than if you chose a more archaic model.
Insurers take your car choice into account, since this is a reflection of your lifestyle, as well as your priorities on the road. People with kids onboard tend to be more cautious, so this can lead to lower premiums.
And of course if you have a modern car, then cutting edge safety features will also protect you in the event of a crash.
Opt to increase your deductible
Volunteering to pay more when you need to make a claim will incentivize insurance providers to charge you less for your policy. This is because they are bearing less of a risk, and it is also a reflection of your confidence in yourself as a motorist.
Obviously this is a double-edged sword, because you are exchanging the chance to pay less for your insurance upfront for the requirement to foot more of the bill for repairs post-accident.
This might not appeal to everyone because it is a bit of a gamble, but it definitely helps to drive down insurance costs, and if you don’t make a claim for years at a time then this saving will be quite significant.
