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Mar 11

Discover how to save hundreds on car insurance costs

Reading Time: 4 mins

Car insurance is commonly described as a necessary evil and for good reason too. While it’s mostly undesirable, it’s accepted. Everyone must carry insurance for better outcomes if they have a road-worthy vehicle. It ensures financial protection in case of injuries to other traffic participants, pedestrians, and passengers. Insurance isn’t for the small stuff. It’s for those things that can ruin your life and alter your financial status. As consumers, we have the tendency to flinch whenever we see the insurance bill. The only thing we can think about is money that’s flying out of the pocket.

We tend to ignore the fact that insurers help prevent risks. Not many know that insurance companies have had an important part in vehicle safety testing and the implementation of safe practices. Not only do insurers suffer the financial consequences of car crashes, speeding, and so on, but also they have a lasting positive societal impact. It’s better to think about car insurance as a social good rather than a necessary evil. Get over the cost you must pay. 

If your car insurance policy is expiring, if you’re thinking about canceling your previous policy, or you’ve just bought a new car, you need liability coverage. Perhaps money is tight. In this case, you can resort to various tricks to lower your costs. Are you curious? Keep on reading to find out more. 

 

Shop around for the best deal 

A comprehensive car insurance policy will cover damage, repairs, medical expenses, theft, and so on. Car insurance rates vary greatly among providers, which is why you should do your homework before making a decision. You can save thousands of dollars/pounds a month if you choose the right insurer. Each insurance company has its own formula for calculating the rates, so it’s necessary to compare quotes from different providers. Make sure that you’re getting the most value for your money. The point is that comparison shopping is important in terms of saving money. 

Aspects such as who you are, where you live, what you drive, and how you drive are taken into consideration. What is more, insurance companies look at how much it will cost to get the vehicle fixed if you get into an accident. Online comparison platforms allow users to research and perform a car insurance quote comparison for all kinds of motor vehicles. You’ll find a list of insurance companies with affordable costs per month. All you have to do is to provide some details about you and your car. 

 

Raise your car insurance deductible/excess 

The deductible, or excess, is the amount of money you have to pay before the insurance kicks in and the company starts paying you. The higher your policy’s deductible is, the lower the annual or monthly premiums are. If you opt for a higher deductible on your car insurance policy, you’ll lower your expenses considerably. Saving money by raising the deductible means that you need enough money at hand to cover the deductible. More precisely, if something goes wrong, you’ll have to dig deep into your pockets. 

It’s not going to be helpful if you don’t have enough cash. How big is your emergency fund? Think things twice before making a decision. Forget about the potential savings for a second and analyze your financial situation. If you can’t afford the deductible, then it shouldn’t be very high. Raise the deductible on your car insurance policy only if it makes sense from a financial standpoint. 

 

Cover several vehicles under the same policy 

You can save money while getting much-needed coverage. How? Here’s an idea: Insure two or more vehicles with the same provider. This way, you can leverage all the benefits of the standard auto insurance policy and receive a discount for each car that you add to the policy. If you choose a multi-car insurance policy, you can take advantage of a discount in premiums.  

It’s not necessary to apply for a new insurance policy because the insurer will allow you to transfer your present cover to the new vehicle. They don’t want to lose your business. You can opt for individual levels of cover, but the policies will be linked under your name. Reach out to your insurance agent and discuss the details. Keep in mind that it’s not possible to add a non-related driver to the policy. If you and your family member have different addresses, it might be difficult to obtain the car insurance policy. 

 

take a safe driving course 

In case you didn’t already know, the vast majority of insurance companies offer discounts off the annual auto insurance premium if you take a safe driving course. You might qualify for this defensive driving discount and enjoy a cheaper insurance policy, but you won’t know for sure until you ask. Check out eligibility requirements. If you qualify, do your best to improve your driving skills. You’ll get a certificate of completion after finalizing the course.

Not only will you save a lot when it comes to car insurance premiums but also you’ll become a better driver. You’ll obtain safety skills that go beyond the basics, learn how to overcome distractions, and keep your driving skills up to date. It doesn’t matter what age you are, you should consider taking the driving safety course. It will usually help. You’ll keep your premiums low because you won’t get into any accidents or get driving tickets. 

To sum up, there are simple and effective ways in which you can save money on car insurance. Having coverage doesn’t necessarily leave you broke. There are plenty of things you can do to reduce your bill, as you’ve been able to see. In the context of COVID-19, it’s understandable if you’re considering different ways to lower your expenses. We’re living in tough times! 

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