Better insurance prices mean more money for you at the end of the day. Why be trapped into overpaying? Your hard earned money can be put to much better use than constantly going toward a large insurance payment every month. Don't fall into the trap of getting stuck with a policy and plan that doesn't fit your budget. Here are some great tips to get the best price.
Compare Prices On The Internet
You can dramatically reduce the cost of insuring your vehicle simply by comparing prices online. Many consumers are able to save hundreds of dollars on their insurance simply by switching to a different provider.
Thanks to the Internet, the insurance buying process has been made far easier. Instead of having to call multiple companies for quotes, you can use an online comparison tool to get quotes from more than one provider with the simple click of a mouse.
Choose Your Vehicle Wisely
One easy way to reduce the cost of car insurance is by choosing the right type of car. This is especially important for young drivers.
Insurance companies tend to charge higher rates for sports cars and other cars that are designed with large, powerful engines. The cost of insuring a convertible car, in particular, can be quite high, simply because they are more likely to be vandalized than other types of cars. You can keep the cost of your insurance premium down by opting for a less flashy or less powerful car. Insurance rates usually drop the older a car gets, as well. Because of that, you may want to consider buying a used vehicle that is five or ten years old.
Some of the primary factors that go into determining the cost of insurance include how expensive the car is to replace, how likely it is to be involved in an accident, and how secure it is against threats such as vandalism. You can find out more about which cars fall into which insurance group by doing a little bit of research online.
Only Buy Coverage That You Actually Need
One of the biggest mistakes that people make is paying for coverage that they don't actually need. For instance, some insurance policies offer coverage for car rental in case your vehicle is out of commission. If you already have a second vehicle, however, you may be able to decline this coverage. You should also think about how much your car is worth. If it is a relatively low amount, you may not want to pay extra for comprehensive insurance coverage.
Minimize The Number Of Drivers
Adding extra named drivers to your insurance policy can increase your premium according to Money Expert. This is especially true if those drivers are teenagers. Instead of paying for year-round insurance for these extra drivers, you can consider purchasing a temporary policy during any periods of time when they may be driving your vehicle.
Opt For A Higher Deductible
Choosing a higher deductible can lower your monthly insurance costs. Just be sure that you set the deductible low enough that you can actually afford to pay it. For extra security, put enough money in savings to cover your deductible. That way, you won't have to scramble to come up with money if you do get in an accident.
Decide If You Need Special Insurance
Collectible cars, high-end sports cars, cars also used as taxis and other types of cars may be cheaper to insure by going with a car insurance company that specializes in these unique cases. Of course, you should still compare prices. Just because a company specializes in a particular type of insurance doesn't necessarily mean that they have the best rate.
Avoid Excessive Customization
Customizing a vehicle can be fun. However, it can also decrease your chances of being able to buy car insurance. Keep any customization to a minimum, avoiding excessive changes to the vehicle.
Keep Your Car In A Covered Space
Insurers usually offer lower rates for vehicles that are parked inside of a garage or in a protected driveway instead of out on the street. If nothing else, at least make sure that you park in an area that has plenty of lighting to minimize the chances of break-ins or vandalism.
Consider Adding Extra Security Devices
You may be able to qualify for a lower insurance rate by installing certain security devices on your vehicle. For instance, some insurers provide discounts for car alarms, GPS tracking devices, or devices that are designed to prevent the vehicle from being driven by an unauthorized driver.