It is impossible to deny that car ownership nowadays tends to be costly. Purchasing gas, keeping up with maintenance and paying insurance premiums all take a toll on the pocketbook, and just about everyone is interested in learning how to reduce the overall price.
The fact of the matter is that car insurance is perhaps the most onerous expense related to having a vehicle, and drivers everywhere seek methods of reducing the budgetary impact. Young drivers, those with bad credit and motorists with a blemished driving record are likely to pay additional amounts, and it is worth exploring techniques for achieving real savings.
Whether by increasing deductibles or adding security features onto the vehicle itself, a series of useful methods for lowering insurance rates do exist, and they ought to be thoroughly considered by all.
One of the smartest strategies for drivers interested in reducing insurance costs to attain that goal is to boost the deductible amount on the coverage being carried. The greater the deductible amount that is applicable in the event of a claim, the lower the cost of premiums. It is also worthwhile to think about limiting the number of tack-on coverage options such as towing, roadside assistance, rental car payments and the like. These can generate significant savings over the long term.
It also behooves every car owner to do some comparison shopping when it comes time to renew auto insurance each year. There is no reason to remain with a given carrier if better deals can be had elsewhere. A range of online price quote tools exist for this very purpose, and insurance brokers can also be a wealth of information about different coverage providers.
Recently married drivers are also likely to find that their insurance costs have decreased. This is because carriers tend to view married couples as having more stability and presenting less risk of filing costly claims.
Soliciting price quotes before an insurance policy is actually needed is a terrific idea as well, as it is often possible to lock in a certain rate well in advance. This hedges against a carrier-wide increase which could happen in the interim period. You can use a company like Money Expert to do so.
Placing an older, more seasoned driver onto the policy of a younger motorist is an additional technique for securing insurance savings. The additional driver does need to be in the same household, however, in order to negate suspicions of fraudulent conduct.
Whenever possible, keep the insured vehicle in a garage, especially at night. Insurers see such vehicles as being much safer and less likely to be the subject of a theft claim. Adding alarm systems, GPS tracking devices and other safety tools to the covered car can also serve to lower the premium payments required.
Shopping for a car that is considered less desirable by thieves is another tactic for getting a better deal on insurance. Families with more than one car can also generally secure a volume discount on their coverage, something that should be taken into consideration at policy purchasing time.
Paying the entire premium cost at once rather than over a period of months is a useful way to save, as carriers tend to charge a bit more for the convenience of spreading payments over the course of a year.
Keeping mileage low can yield real savings as well, because the fewer miles on the road, the less the insurance company will see a particular driver as a claim risk. The accident and theft exposure is thought to be far less serious if a car is not in use a great deal.
Those with older model cars ought to stick with a minimal level of coverage. Purchasing only the amount required by law makes good sense, because such a vehicle will not be worth a large amount if damaged in an accident. Paying extra to cover an old beater makes little sense.
Limit the number of aftermarket parts and accessories installed on a vehicle. Costly wheels, aerodynamic additions and the like will almost certainly raise the insurance rates on a given car. All of these options give the impression that the driver is into racing and poses a greater risk of filing a claim.
In the end, there are effective methods of lowering insurance rates for those willing to put some thought and time into the shopping process.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.