5 Tips for Buying and Saving on Car Insurance

Are You Getting The Best Bang For Your Buck?

Car insurance, though expensive, is one thing consumers hope to never use. While it’s critical to buy the right type of coverage, it’s also necessary to get the best bang for your buck. Here are five helpful tips on how to keep your premiums and auto insurance in check without taking on unnecessary risks.

How do you know what car insurance is right for you?

Pick a Top Rated Insurer

Saving money isn’t always about scoring the lowest premium. While some insurance companies have lower premiums, it ends up costing you more during the long run due to lowball loss estimates, hassling the repair shop to cut corners, and forcing you to pay more for original equipment replacement parts.

A Perfect Balance

Be sure to set the right deductible. A higher deductible will reduce your premium because you’ll be paying more out of pocket if you have a claim. Hiking it up to $600 from $300 can cut your premium on collision up to 30 percent. Go to $1,000 and it may save you as much as 40 percent. If you have an outstanding driving record and haven’t had an at-fault accident in years, selecting a higher deductible may be your best bet. Just ensure that you will be able to pay the costs if your luck runs out.

Review All of Your Coverage

Your coverage will pay for bodily injuries and property damage that your accident may cause. Don’t get caught short by reducing your liability limits to the state minimum. Buying more coverage may seem like a weird way to save more money, but if you have a costly claim, it may put your life savings at risk.

Take Advantage of Discounts

Car insurers offer a wide range of discounts that are based around low-risk lifestyles including new drivers who have taken a driver training course, co-eds with great grades, elderly drivers who took a refresher course, any driver who has participated in a defense-driving course, member of an affinity group, folks with anti-theft or safety equipment.

Maintain a Good Credit Score

Your credit score is an important factor when it comes to getting a low premium. Ask your insurance company if it can take into account your good credit standing and set a lower premium. Regularly check and correct credit reporting errors to ensure that your credit score hasn’t been adversely affected by divorce, recession, late check payments, military deployment, job loss, or the death of a family member.

Drive Less, Bike More

A major cost component in auto insurance is miles driven per year. The average is roughly 12,000 miles. But if you’re driving a lot less, let your insurer know. You could lower your premium by five to 10 percent.

Interested in reducing your auto insurance rates?