If you own a vehicle, having car insurance is a must. However, choosing between the numerous insurance companies out there can be a very frustrating affair. If you are not prepared, you might find yourself paying more than you have to and wasting your money.
Here are some tips for saving on your car insurance:
- Bundle auto and homeowners insurance
Most insurance companies will give a discount if you bundle auto and homeowners insurance. You might also save if you insure more than car with the same company. When shopping around, be sure to ask companies about the offers they have for bundling two or more insurance policies.
- Compare insurance costs before purchasing a car
Before purchasing a used or new car, find out how much it will cost you to insure. The insurance premium required will be determined by factors such as the price of the car, the possibility of theft, its safety record and the expected cost of repair. If the car comes with features that lower the risk of theft of injuries, the insurer could offer a discount.
- Don’t take unnecessary insurance
Before renewing car insurance, take time to review your needs. For example, it would not make sense to take comprehensive insurance or collision insurance if your car is old. If the amount you are paying in annual premiums exceeds the value of the car, then you don’t need the insurance. The money saved can then be used to cater for car maintenance or saved for a newer car. There are several free sites out there that can help you determine the value of your car.
- Keep a good credit history
Having a good credit record can be very beneficial when it comes to reducing your insurance costs. Research has shown that people who have a good credit history are less likely to make claims. Therefore, the better you manage your credit, the more savings you are likely to enjoy in car insurance.
- Shop around
Car insurance rates vary from one company to another. Therefore, take time to shop around and get several quotes. You could research on companies online or call them directly for information. Alternatively, visit independent agents who can advice you on insurance policies offered by different companies. However, don’t make the mistake of shopping based solely on price. Read reviews and get recommendations from family and friends.
- Pursue other discount options
Insurance companies are likely to offer discounts to people who drive less miles per year and have not had any booking or accidents within a given period. People who have taken defense driving classes might also enjoy lower rates.