How To Lower Your Car Insurance Costs
Nobody wants to overpay for car insurance, regardless of the several benefits it’s supposed to offer. And given that the average cost for full car insurance coverage hovers around $2,014 yearly, being able to slash it down by even a few dollars can go a long way to benefit your pockets.
With the right strategies, you can reduce this cost by as much as 30% and more, saving you loads of money while ensuring that your vehicle remains adequately covered. That said, you don’t have to stress about your car insurance eating too deeply into your finances. The following tips can help you significantly lower your costs.
Consult with an insurance agent regarding car insurance decisions, and meet with an attorney to discuss all legal issues.
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Shop around for cheaper offers
You may have heard this point many times over, but it’s still worth mentioning – shop around for cheaper offers. You probably shop around for cheaper options when purchasing anything you need, so why not do the same for your insurance coverage? Whether you’re looking to renew your existing coverage or thinking of getting insurance for the first time, always compare the rates from various auto insurance providers to determine the cheapest offer.
You’ll be surprised by how much this simple tip will save you. Car insurance rates significantly vary from one insurance company to the other, even for the same coverage, and you wouldn’t know how much you can potentially save if you don’t shop around.
Practice safe and defensive driving
If you’ve already purchased a policy and do not intend to renew it any time soon, then the best way to lower your insurance costs is to practice safe and defensive driving to avoid accidents. This tip will not only save your life but also positively impact your car insurance premiums.
Insurance companies also assess risks when determining the cost of coverage. So if you have a history of safe driving with no recorded accidents, an insurance company will consider you less risky to insure. They will look at things like your participation in safe driving programs, good driver discounts, claim history, and your involvement in no-fault accidents.
Speaking of no-fault accidents, some insurance companies have aggressive legal representation and will only agree to pay if there’s clear evidence you’re not responsible for an accident. In such cases, you’ll need legal assistance from an expert like a trucking accident lawyer to get the compensation you deserve.
Ask for higher deductibles
Deductibles are what you pay before your auto insurance coverage kicks in. This is the amount taken out of your insurance check when you file a collision or comprehensive insurance claim. While it may sound counterintuitive, asking for higher deductibles can help you significantly lower your insurance costs.
How, you ask? Because a higher deductible means you’re taking on more of the cost in case you file a claim. Plus, you’ll be less likely to make claims for minor car damages, as your repair cost will probably not exceed your deductible by much. For example, if you increase your deductibles from $100 to $500, you can reduce your comprehensive and collision coverage by as much as 30%. However, make sure you set aside enough money to pay for this if you have a claim.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(amazon author page) amazon.com/author/kenboyd
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/