There are over 270 million vehicles that are registered with the DMV and so it’s just right that there are laws that require all drivers to have a vehicle or car insurance. In the United States alone, it is estimated that there are around 6 million vehicular accidents each year.
With this data, it was also found that more than 90 people die in car accidents each day. With those numbers, the importance of owning car insurance should be emphasized. However, owning car insurance isn’t for free.
On average, auto insurance would cost around 1,500 US dollars each year, but the rates would vary on a person’s location. Other factors that are considered when it comes to this are the age of the car owner, driving history, and the year, make, and model of the vehicle.
The most common insurance claims are fender benders, theft, windshield damage, and animal collision. Some of these could be the causes of rollovers, which would lead to the vehicle being totaled. This is why it’s just smart to have your car insured.
Surely, owning insurance can get a bit expensive and so it’s important that before getting your vehicle insured, you think of ways of how you can save money. Here are some tips to save a few bucks on vehicle insurance.
- Shop around before you close the deal
It is important that you check on the rates of different car insurance providers. While the factors mentioned above could affect the rate of your insurance, insurance companies just really have different rates as they offer different coverage. Using free online services help you compare car insurance quotes to find the best rate and coverage.
Check which insurance company has the best offer when it comes to coverage. Know that your credit score can also affect the rate of your insurance. If you have a good credit standing then you’ll most likely be eligible to get lower rates. People with poor credit or who recently filed an insurance claim because of an accident may get higher rates.
- Check for discounts
Indeed,insurance companies offer different rates when it comes to the coverages they offer. The same goes for the discounts that they offer. The factors mentioned earlier are usually what thee companies look at for you to qualify for a discount.
Some insurance companies like Allstate offers discounts based on the vehicle you’re driving and coverage options. Meanwhile, Geico offers discounts based on your vehicle, driving history, and driver training. Typically, the discounts that you may get would range from 5 to 50 percent.
- Drop the insurances that you don’t really need
There are actually a few types of insurances out there that you can avail. A Collision Insurance is what you can use to repair your vehicle if it was damaged because of crashing into another vehicle or object. Meanwhile, a Comprehensive Insurance is what you can use if your car is stolen or damaged by natural calamities, vandalism, and animals.
While both these insurances sound necessary, you should take a look at the deductible amount and what you pay for annual coverage. If it doesn’t seem worth it, you can just drop both. The last thing you want is to pay for these insurances only to get less than what you actually pay for each year.
- Raise the Deductible
You can lower your monthly premiums if you have your policy deductible raised. Typically, insurances would offer their customers a 500-dollar deductible. What you can do is to request an increase to $1000. This is just a good way to lower what you pay each month.
You still have to check different deductible quotes for this as insurance companies may still have different policies regarding this.
- Go for usage-based insurance
Usage-Based car insurance might be the best for you if you don’t really drive a lot. This is also called a pay-per-mile program. Most insurances like State Farm, Progressive, Safeco, and Travelers already have this kind of insurance.
When you avail of this, you will have to install a small device in your car that could transmit your mileage data to the insurance company. If you end up with low mileage, you can get a discount. The same goes for having safe driving habits.
Insurances that track your driving habits checks on your speed and hard breaks. Basically, they would offer you discounts for driving safely. Currently, most of these insurances are heavily promoting this. Allstate, Esurance, and Nationwide also offer their pay-per-mileage customers a sign-up discount.
Overall, the best that you really can do is to check rates from different insurance companies and drive a vehicle that is cheap to insure. Make sure that you always drive safely to avoid any bad records that could affect your insurance rate.