Statistics show us that the average car insurance policy is around $1,200 per year. This is not something that is easy to handle for many vehicle owners and prices keep going up. You do need car insurance to protect yourself and the basic coverage that you are required to have by law is usually not enough. This is why you should be aware of the very simple ways to reduce car insurance costs presented in the following paragraphs.
Use Multi-Car Discounts When Available
When a car insurance company gives you a single-vehicle insurance quote, the cost is usually higher than when you are given a quote for several vehicles or drivers. Deals are almost always available for multiple-car and driver scenarios.
All you have to do is discuss this with the insurance agent. This will tell you if you do qualify or not. Some rules do have to be respected and there are some limitations but whenever you can take advantage of such a deal, you save a lot of money.
Be The Safest Driver You Can Be
You need to pay attention whenever you are on the road. There are so many in-car distractions that can lead to huge problems, including accidents. The big problem is that when you are involved in more moving violations and accidents, your car insurance premium will go up. If your driving record is very good, you can expect a discount. Sometimes, the insurance provider can give you a 25% discount. But even 10% is very good.
Defensive Driving Courses
Many insurance companies offer discounts if you complete approved defensive car driving courses. Also, you might be able to reduce how many points you have on your license when you do this, just as with accident prevention courses.
Ask the insurance company or the insurance agency about such a discount before signing up. You do not want to go through the course and not get the benefit.
Shop Around
All you have to do is go on Google and see how many insurance companies are available and you can contact them. You will quickly figure out there are many more than you expected. Taking advantage of this is very easy if you just shop around for the best rates and deals.
When the policy is close to renewal and the annual premium will go up, shop around. In addition, it is a very good idea to get new quotes regardless every two years because the industry keeps changing. The more competition exists between car insurance companies, the better rates will be available for you.
Improve Credit Rating
Your driving record is a huge factor that determines insurance costs. But did you know that your credit rating also has an impact? This is one thing most car owners do not know. Insurance companies often consider the credit ratings because they show if you are responsible or not. When the credit score is low, the insurance provider might consider you a high-risk driver. Fortunately, there are several ways in which you can increase your credit score. Use them and get a lower insurance premium.
