Getting cheap car insurance is something many of us strive after but this can be hard to do unless we take action. Getting into gear to reduce your car insurance costs is certainly a good idea, so read on to find out more about five ways you might well be able to reduce the amount you pay for car insurance.
Change your address
Okay, so not everyone will be able to do this, but moving house can save you a considerable amount on your insurance. Your address is one of the things that insurance companies look for when deciding how much to charge you; aspects such as the local crime rate and the security at your property can make a difference to your insurance policy.
In fact, moving from one zip code to another can save you as much as $1000, so if you are due to move house it’s definitely worth checking out the impact this will have on your insurance before you go.
Be a safe driver
This is something of an obvious one, but it’s probably the most important: drive safely. Safe drivers find it easier to save money on their insurance because they are a much lower risk than other drivers. If you drive properly, obeying the relevant speed limits and traffic laws, you’ll be much less likely to have an accident.
In turn, this means you’ll be much less likely to need to make a claim on your insurance policy. Over time, as you go for longer and longer without making a claim, it will lead to lower policy costs. It might take a few years of careful driving to really start to feel the benefits, but as a way of reducing your insurance costs in the long term, this is one of the best.
Up your deductibles
The deductible rate on your car insurance is essentially what you would have to pay in the event of making a claim. So if you have your current deductible set at 10% and subsequently make a claim for $1000, you’d have to pay $100.
Agreeing to up your deductible limit can be a good way to reduce the amount you have to pay for your car insurance policy, so you might like to consider upping it to 20% or above. This can be a good option for drivers with a long no claims record as your chances of needing to make a future claim are generally smaller.
Pick your car wisely
Your choice of car is something else to consider, so the next time you buy a new one, think about how it will affect your insurance. Some cars cost more to insure than others: smaller, safe cars tend to be cheaper in insurance terms than cars with big engines and lots of power. This is calculated based on the likelihood of certain cars being involved in accidents, along with your track record as a driver.
Get new quotes every year
Finally, don’t be satisfied just with renewing the same policy every year. Review it annually to make sure it still meets your needs – and get new quotes to see if you could get cheaper cover elsewhere. The longer you’ve been driving, the more likely it is you’ll be able to get the cheapest car insurance cover, so don’t neglect your policy review.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.