Car insurance can be costly if the subscriber doesn’t have a good plan in place to ensure that he or she gets the most affordable prices. The good news is that anyone can reduce the price of car insurance using a variety of tips and tricks. These are some examples of ways policyholders can lower their car insurance costs to have an easier time managing the bills.
Install Security Devices
One way to decrease the amount of the monthly premium for car insurance is to install security devices on the vehicle. Insurance companies usually give discounts of about 8 to 10 percent for safety devices. Backup cameras, proximity sensors and airbags are examples of devices that will provide access to such discounts. A policyholder can contact the insurance company and ask them what kind of discounts they have available. The individual might find out that more discounts are available than he or she thought.
You can also improve the safety of your driving by using things like OEM backup cameras to help avoid fender benders and parking lot accidents that can mess up your premiums.
Check for Membership Discounts
Another way a person can reduce the cost of car insurance is by checking for available discounts through special memberships. For example, some credit union members can receive discounts on their policies for being connected to the financial institution. Roadside rescue clubs may also provide a policyholder will access to special discounts. Additionally, a discount might be available to a college student. Interested parties should review their membership and see if they can gain access to some savings every month.
Change Your Coverage
Sometimes, policyholders need to take steps to lower their bills temporarily. In that case, a customer may want to manipulate the policy a little bit. The individual can change from full coverage with comprehensive and collision to minimum liability coverage if he or she owns the car. Another option is to keep the collision and comprehensive coverage and change the deductible amount. The deductible is the amount a person has to pay before the insurance company covers the damage repairs. The higher the deductible is, the lower the premium is. This should only be a temporary solution to reduce bills because no one ever knows when an accident will occur.
Combining policies is another great way to lower the cost of car insurance. Auto insurance companies give discounts to people who have more than one vehicle on the policy. The multicar discount can be as much as 25 percent off the premium. That works out to be a significant amount of money in most cases. Therefore, a person who has a teen or spouse with a separate vehicle can consider putting those two vehicles on the policy to obtain a discount. It won’t be necessary to switch providers.
Bundle Your Insurance Products
Signing up for bundled coverage may work for someone who gets his or her car insurance from a company that also sells other types of insurance. Those who need other insurance such as life and health insurance can easily bundle those products for a significant discount. That way, they’ll have every type of insurance they need as well as a break from paying such high premiums all the time. Multipolicy discounts can be as high as 25 percent. Therefore, a policyholder should take the time to talk to an insurance agent about the available discounts for bundling products. That discount can work in conjunction with other helpful discounts.
Sign up for Autopay
Auto-pay is a convenient service that allows customers to have their premiums deducted from their credit cards or bank accounts automatically. Some insurance providers offer monthly discounts to those who agree to pay the premiums in this manner. The discounts might not be large, but they will help to reduce expenses for the policyholders. Some companies give discounts of $5, while other companies offer a bit more. Customers who enroll in autopay also get the benefit of having a more organized financial profile. Interested persons can find out if their provider offers this option by making a phone call right away.
Boost Your Credit Score
Nowadays, a consumer’s credit score and report play a role in the cost of automobile insurance. Therefore, someone who wants to lower the costs would need to improve his or her score. The premium might be much lower the next time the car insurance company reviews the person’s credit score to renew the policy. An individual can boost his or her credit score using several methods. One method is to order a copy of the report and review it for errors and negative accounts. That person can then dispute any accounts that look suspicious or suspect.
Start Lowering Car Insurance Costs Today
Those are some effective ways to reduce your car insurance costs without having to switch providers. Interested persons can try some of these methods to see how well they can work to save money.