Home Finance and Insurance Financial Tips for Lowering Your Car Insurance Costs

Financial Tips for Lowering Your Car Insurance Costs

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When you’ve got a car, buying auto insurance can be expensive. Depending on your driving habits and your geographical area, the price tag on car insurance could easily top 10 percent of your annual income. Luckily, there are various ways a car insurance costs lower.

For example, if you drive safely, you may qualify for discounted rates or premium discounts available to those who have proven they can afford car insurance based on their income or other factors. To determine if lowering your car insurance costs is correct for you, consider these tips: Reduce Your Risk by Reducing Your Risk… of course!

The more careful and risk-averse you are in relation to driving and other activities that can result in auto accidents from the start, the less likely it is that an accident will harm you financially as well.

  • For instance, do not speed excessively or ignore road signs and traffic signals;
  • avoid becoming a frequent driver (and therefore a high-risk driver);
  • never flee from the scene of an accident; always wear your seatbelt;
  • do not carry excessive amounts of cash (and therefore no cash to pay extra for speeding tickets), etc.

Tips for Lowering Your Car Insurance Costs

Read through our blog post to Lower Your Car Insurance Costs.

Find Discounts and New Car Purchases

If you frequently change cars, you may qualify for discounts that allow you purchase new cars at a lower price. There are certain instances when you might be able to negotiate a discount on car insurance. For example, if you switch car insurance companies, you have the entitlement to obtain a rate reduction providing you have kept your driving record clean and not caused any major accidents.

To discover what discounts are on hand, contact your local branch of the state’s department of motor vehicles and ask if you can obtain a copy of your file.

Keep Your Roads Clean

Driving with a clean record and abiding by all traffic laws is the obvious way to ensure that you will never have any major accidents and cause any damage to your car. If you keep your car’s interior, tires, and undercarriage free of excessive grime, you won’t have to shell out as much to get it repaired in case there is an accident.

Hold Harmless

If you’ve had very few accidents and have maintained a clean record, you may get a quote with just a one-time premium payment. If you’ve had a handful of minor accidents before but have not done anything else wrong, you may get a quote with a reduced monthly rate which includes a small deductible.

Avoid Unnecessary Collision Damage Protection

While it’s true that collision damage coverage helps cover the price tag of repairing your car if it’s damaged in an accident, it may be beneficial to shop around and see if you can obtain a better deal without the extra protection. Many insurance companies offer discounts should you not buy the coverage.

Get a Good Car Insurance Company From the Start

If you switch car insurance companies, be sure to do so at the right time. Ideally, you need to switch companies at the season when rates typically fall because then you can obtain a better deal. Switching companies before an accident or driving too recklessly could also help.

Reduce Non-Collision Charges

When you notice that your car insurance rates are especially high, it can be because the company is passing these costs on to you. You should definitely ask your agent what these non-collision charges are, how much they cost you, and if they come waived.

Don’t Ignore The Basics

It is essential to keep your car in good condition and to get regular maintenance done on it. This will assist ensure that you have a low repair bill if you cause an accident. Additionally, it is a smart idea to have your car inspected every year to make certain that everything is in good working order and that the vehicle is not susceptible to any major damage.

Bottom Line

Of course, it seems sensible to keep an eye on your car insurance rates and make adjustments every time they start to climb. With the right approach, you will be able to lower your car insurance costs while still staying safe traveling and maintaining a clean record.

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