You are not satisfied with such a high total amount of auto insurance premiums, aren’t you?
Having a good driving record is, for sure, the best way to keep your car insurance costs low. However, unexpected things still happen, which results in higher insurance costs than you want to pay.
This article offers you a strategy called “CD strategy” (which contains sub-strategies) to lower your insurance costs.
C = Comparison
Trust me, after a thorough comparison, you will find how helpful it is for you. You may ask: compare what to what, how to compare, etc. Here comes the answer:
Comparing insurance costs for specific cars before buying a car
Car insurance premiums are decided based on cars’ price, repair cost, its overall safety record, the risk of being stolen or getting damaged. Therefore, investigate these first to have a clear understanding of insurance costs. Then, you can decide what car to buy. Refer to Bao Viet Vehicle Insurance to get the best deal on your car insurance.
Comparing aspects of different insurance companies
Each company has its strengths and weaknesses. Therefore, it is beneficial for you to shop around.
“What should I do together with shopping around?”
Well, you may compare (1) price quotes, (2) financial health of insurance companies, (3) recommendations for insurance companies. Let’s consider each aspect in detail.
Get three price quotes (but, the more, the better) to compare. Then, you will have the company with the price that you are willing to pay.
If you haven’t thought of how to have the price quotes, let’s contact directly the insurance companies you intend to buy insurance package. You can also access information from their websites. Some states even provide their citizens with comparisons of prices charged by major insurers through a professional department.
An example of comparing car insurance quotes
The financial health of insurance companies
Needless to say that insurance is the protection against loss. Therefore, it is vital that the insurance company picked must be financially stable. To check your insurance company’ financial health, you can access information through companies like Standard and Poor’s or from trusted magazines.
Price is not everything, isn’t it? So, smart people never shop by price alone.
There is a cost-effective way to have trusted information about insurance companies. It is the recommendations from friends and relatives.
Some people also contact the state department to ask for any clues of consumer’s complaints towards insurance companies. Others even check those companies’ service by calling the companies’ operator and evaluate if the staff-in-charge take time to answer their questions adequately.
Comparing coverage on older cars to the premium
If your vehicle is worth much less than the premium, it may be the time that you consider dropping collision and comprehensive coverages on your older car.
To know the worth of your automobile, you can ask auto dealers, banks or look it up online.
Now, let’s see how you can save money for car insurance costs with the letter “D.”
D = Discounts Discovery (and something like that)
Discount hunting is the work that I love and want to talk about the most. Listed below are some strategies you should apply to keep your car insurance premiums down.
Asking for higher deductibles
The higher deductibles you can obtain, the lower cost you have to pay for insurance premium. To be clear, deductibles are what you absorb before your insurance pays you for expenses. For example, an $1,000 deductible can save you 40 percent on your collision and comprehensive coverage cost.
However, please ensure that you have enough money to cover expenses if you have a claim.
Getting discounts for being a “loyal” customer of an insurer
Many insurers will give their customers a break if the customer buys at least two types of their insurance. Besides, the more of your household items get insured by the same insurer, the higher reduction you may get from the company. It seems to be a bargain, right?
Still, please take research on the market. Sometimes, buying from different companies (instead of having more than one insurance policies with the same insurer) saves you money.
Low mileage discounts, don’t you forget to utilize it?
Some motorists are offered discounts from their insurance companies because they have driven less than the average number of miles per year. So, if you carpool or take public transportation to work, etc…, which makes you drive less, let’s take advantage of such kind of discount.
Qualifying for low mileage discount will save you for insurance cost
Group insurance, why not?
Corresponding with policies of some insurance companies, drivers who get their car insured via the membership of a group, a club, an association, etc. will have to pay less for their insurance premiums. Those policies are usually a favor that the companies offer towards their corporate customers.
You may not pay attention to why the policies exist, but don’t forget to check the possibility of getting a discount for your vehicle body insurance cost under the group insurance scheme.
Don’t forget to take efforts to seek out other discounts
There are various types of discounts that insurance companies offer their customers to retain. All you need to do is to figure them out.
For example, some insurers offer lower premiums from policyholders who have a clear history of accidents or moving violations for years. Besides, other companies apply a discount policy for customers who take a defensive driving course.
Also, insurance companies even offer discounts like this: providing that there is a young driver on the policy who is away from home for college without a car, the car insurance premium can be reduced to a certain extent..
And so on…
In some states, you can save up to 5% on your auto insurance if your car is equipped with anti-lock brake
Even though car insurance premiums seem to get higher and higher from year to year, there exist several strategies you can pursue to keep your insurance cost low.
Within this short article, we could only present you some of them. If you have others, I am glad to have your comments in the box below.
Above all, please try to have a good driving record and maintain a good credit record. The reason for the former is obvious. For the latter, it is because most insurers use credit information to price auto insurance policies.
I hope that you have enjoyed the article. Thank you.