As a driver, you’ll likely agree that auto insurance doesn’t come cheap. Regardless, keeping an auto insurance policy on a car you hardly drive can come in handy, especially during an emergency. There are viable alternatives to saving money on auto insurance than canceling your policy. Moreover, canceling your policy makes it more expensive to renew in the long run. Premium price tends to increase up to 12% after an interval in coverage. On that note, continue reading to discover some ingenious ways of saving money on auto insurance.
1. Ask your insurer to lower your premium.
Regardless of where you live, you can save a significant amount of money if you don’t drive as much. You can call your insurer and ask for a rate reduction. You might qualify for a rate reduction, which invariably saves you money. Also, as your car is not always in use, try to leave it safely locked in a garage or self-storage facility. This way, you can keep it safe from theft or damage. The good thing is that with self-storage unit facilities scattered all over the place, where to store your vehicle shouldn’t be a problem. You can halve your mileage or reduce how often you drive your car.
2. Add your children’s rate to your own policy.
There’s no gainsaying that auto insurance for teen drivers can be expensive. The reason isn’t far-fetched; they’re considered a higher-risk group of drivers. More so, a significant amount of highway accidents are caused by teenagers.
Insurers consider teenagers as inexperienced drivers and a high-risk group to insure, which invariably raises their premium. If you have a young driver in your household, you can save money on auto insurance by adding them to your existing policy.
3. Take out a cheaper car cover.
If you want to save money on your auto insurance, you may need to shop around for the cheapest option. You can search online, or ask around for the cheapest car insurance company closest to you.
Some of the best car insurance companies provide rebates to cushion the effect of the coronavirus pandemic. More so, some insurers offer flexible payment plans to help customers keep up with paying their premiums. No doubt, your insurance service provider and type of policy determines, to a large extent, the amount of money you get to save.
4. Increase your deductible.
Many people will agree that raising your deductible can save you between 6%-13% on your premium. While this might seem counterproductive, raising your deductible seems like a good idea to help you save costs in the long term.
If your salary has decreased, you can request your car insurance company to raise your deductible. Your insurer will refund you the difference. If you don’t have enough money to cover your increased deductible, don’t bother raising it.
5. Cover multiple cars.
Taking out insurance on one vehicle costs more than insuring multiple ones. Auto insurers tend to give a higher quote for a single car or driver. Conversely, car insurance companies offer discounts for customers taking out coverage on multiple cars or drivers.
Under such circumstances, they’re willing to give you an excellent deal to get your business. You can ask your insurance service provider to see if you qualify for discounts on comprehensive coverage. Interestingly, you can save as much as 20%-30% when you insure multiple vehicles.
6. Drive safely.
Naturally, it pays to drive safely. The more mindful you are, the easier it is to avoid incidents that increase auto insurance rates. Some auto insurers offer discounts between 10% and 20%. The reduced rate largely depends on whether you have a clean driving record. Just so you know, you get more points for moving violations, which invariably means a higher insurance premium. If you’re looking to save money on auto insurance, make safe driving a habit.
7. Drive hybrid vehicles.
No doubt, one of the easiest ways to save money on car insurance is by owning affordable cars. A luxury car like an SUV, sports car, or classic car costs more to insure than a commuter car. Some car insurance companies offer a discount for customers who own hybrid, low-cost commuter, or state farm cars. Try finding out the different rates for various types of vehicles that your insurer offers.