As a car owner, it’s essential to have car insurance. It refers to a contract between you and the insurance company that protects you against potential financial loss if the car is stolen or damaged in an accident. It usually covers costs associated with bodily injury, medical expenses, and property damage.
Like other vehicle-related expenses, car insurance premiums are generally expensive. Depending on the type of coverage and other related factors, you might have to pay a considerable amount for an insurance policy. However, what you pay monthly for premiums is not a fixed payment. Did you know that you can lower your car insurance costs regularly? You may even qualify for certain options today and can use other ways to reduce them over time.
1. Be a Safe Driver
Some companies, like Allstate, offer incentives like money back for driving safely over a given time. Other companies are willing to reduce your premiums if you are a safe driver without any moving violations. When accidents happen, premiums go up considerably, so being a safe driver is the best way to keep your premiums low.
Some companies also offer behavior tracking services. These services keep track of your speed, acceleration, braking, and usage. A device is attached, and it sends back information to the insurance company. If your information proves you are a safe driver, you will pay less in premiums.
2. Buy a Temporary Car Insurance
Generally, car insurance provides collision and liability coverage for at least six months. It can also cover you and your car for 12 months. However, car insurance coverage doesn’t have to be long-term. If you only need to be covered for a short period, you can check if temporary car insurance could be right for you. With this type of insurance, the cost is considerably lower since you don’t have to pay insurance premiums for a prolonged period of time.
On the other hand, it’s important to familiarize yourself with the instances where this type of insurance may come in handy. Temporary car insurance may be the best option under the following circumstances:
- You bought a car, but you plan to resell it anytime soon.
- You’re renting a vehicle from another person.
- You’re borrowing another person’s car.
- You’re taking a trip to another country, and you want to drive a car while you’re there.
- You’re driving a car under a ride-sharing service, and you don’t own the vehicle.
3. Buy a Car That Insurance Companies Like
Not to say that insurance companies don’t like to insure all cars, but certain vehicles cost less to insure than others. Unfortunately, this price comparison makes a big difference in the premiums you can expect to pay. If you are out and about regularly, you are going to want full coverage insurance, so consider choosing a daily driver that costs less to insure. That does not mean you can’t get that sporty or expensive luxury car, but it might be wise to use it sparingly to lower your premiums.
You might also want to consider whether you need liability or comprehensive coverage. If you have an older car that isn’t worth the comprehensive coverage, you may consider choosing liability only. To help you make that decision, consider the amount insurance would pay to replace your car and decide if the cost is worth it for you.
4. Safety Features Matter
If you didn’t know, insurance companies appreciate cars with extra safety features. These features go beyond air bags and include car safety technologies, including a lane keeping assist system and rear and forward-facing cameras. Driver awareness monitoring is another feature that could help lower your premiums.
If you are looking for a new car with lots of safety features, contact your insurance company and get a list of features that will lower the premiums. At that point, you can choose your new car with this information in mind to bring your cost down as much as possible.
5. Defensive Driving
Most people think of defensive driving as a way to get out of a speeding violation, but it does so much more than that for your premiums. If you are an otherwise safe driver, by proactively taking a defensive driver course that your insurance company approves, it is entirely possible to lower premiums even further. As a tip, check out a few places and make sure the course you choose does not cost more than the savings you’ll get for at least the first year.
6. Compare Insurance Quotes
Insurance companies want your business, and if you have been with them for a while, you might be able to get a discount there if you are considering looking for a new company. Some might even be willing to match a lower quote or throw in some additional perks so as not to lose your business. It’s worth shopping around to compare car insurance every couple of years before automatically renewing with your existing company to make sure you get the best policy for your hard-earned money.
A Few Last Words on Lowering Your Car Insurance
Lowering car insurance costs is a great way to cut overall monthly expenses. If you are serious about doing so and you’re a safe driver, that’s just the first step. Ensuring your car is insurance-friendly will help, too. Do not forget to tell the insurance company about your safety features, or when you buy a new car, get one with all the features your insurance company likes. Add defensive driving, and you’ve got it made. Shop around to compare insurance to get what will be best for you and your budget.