Car Insurance: Tips & Ideas for Cutting Costs

When you’re behind the wheel, you need car insurance to protect you. But how can you make the liability insurance or car coverage more affordable for you?

Here are some tips and ideas for cutting your car insurance costs:

  • You must remember that insurance companies offer multi-car discounts and make it your goal to take advantage of that. Hence, if you try obtaining a quote from an auto insurance company for a single car, they will surely give you a higher quote.

But if you asked them for quotes for several cars or drivers at one time, you will get a more discounted bulk rate. Do you know why? Because they’re willing to give you a deal if they see promises of more business from you.

You can gather your family members, neighbors, friends etc and then ask for a collective quote.

  • Insurance companies are smarter than you think. They conduct studies to prove that people with good credit scores are less like to make insurance claims. Hence, try paying your bills on time and clearing your credit card debt before purchasing your car insurance. You could win lower premiums this way.
  • Being a safe driver is one easy way to cut car insurance costs. It’s common knowledge that safe drivers are the favorites, especially for car insurance companies. Try to maintain a good driving record and you’ll win safe driving discounts in return on your insurance, almost up to 10% to 23 %.
  • Insurance companies insure different people and cars differently, which is why you will find a difference in thousands of dollars between their quotes. This is why we suggest you first shop around well to see who’s offering what. With three or four quotes in hand, you can settle for the most reasonable one.
  • There are some insurance companies who award discounts to those who undergo defensive driving course. With this course, you can the number of points on your license. You may even opt for accident prevention or similar course to win this discount. Not a bad idea it seems!
  • Bundling your insurances can lower your costs too. You may already be having a homeowner’s insurance or some others and if you wish to purchase more than one policy, it would be a great idea to ask your agent to bundle these. In return, your insurance provider may give you a discount, which they often do on bundle insurances.
  • Using mass transit will shower fewer miles on your insured automobile in year and that is sure to reduce your costs too. You see, it is typical for an insurance company to make you fill a questionnaire before signing up for discounts. If you are commuting for three to four hours daily back and forth from work, you will surely be paying more premiums that those who only drive a mile a day.

Hence, a good idea is to ask your insurance company about their mileage thresholds. That way you can plan your mileage accordingly to win a discount.