Practical Ways To Save Tons Of Bucks On Your Car Insurance Policy

1) Drive less, get a discount

If you are driving less than 7, 500 each year, you are qualified for a low-mileage discount on your insurance policy. There are also many car insurance providers that offer commuters’ discount if policy holders use public transportation during the week.

2) Don’t use your vehicle for business functions

There are some insurance providers that add a “business use surcharge” or increase your premium as your mileage increase every year. However, if you absolutely must, always inform your agent or your insurance provider before you use your vehicle for any business functions. This is to ensure that your daily business travel is covered.

3) Increase your deductible

Increasing your deductible from $250 to $500 could lower your insurance premium by up to 15% annually. However, be aware that you are required to pay the larger deductible upfront if you are involved in an accident.

4) Keep tabs on your credit report

A solid credit history can potentially lower your insurance rates. Your credit history is one of the many documents that your insurance provider will evaluate when setting rates which is why it’s an absolute must to pay your bills on time and maintain a great credit history otherwise you risk being turned away by home and auto insurance companies.

5) Maintain a great driving record

Did you know that single speeding ticket could increase your car insurance rates by up to 5% to 10%, depending on your state? If you do not have any accidents or traffic violation for a specified period, usually three to five years, you may be qualified for a price break from your insurance.

6) Settle for a low-profile vehicle

Cars are rated on a risk scale for auto insurance purposes. Sports cars and other flashy and/or expensive vehicles are classified as high risk because they are the common target for thieves, vandals. Also, people who own these types of cars tend to give the impression that they drive more recklessly.

7) Consider moving

Living in the city costs more for car insurance. Living in urban areas mean more exposure to traffic congestion, crime, accidents and such. On the other hand, living in rural communities means the possibility of theft, vandalism and crime occurring are significantly lower than living in urban areas.

Park your car in a garage

Using a car garage to protect your vehicle will get you a small auto insurance premium discount. This is because cars parked in garages are less likely to be vandalized, stolen or struck by other cars.

9) Consider installing safety and/or anti-theft devices

Installing various safety and anti-theft devices, such as anti-lock brakes, automatic seat belts, airbags car alarms and tracking systems, not only lowers the chance of your vehicle being stolen or vandalized, you could also be eligible for certain discounts.

10) Keep your eyes peeled for discounts

It’s always best to hunt down various discounts that you can take advantage of. For example, you may get a discount if you insure multiple cars under the same policy or under the same company. Purchasing two or more types of insurance from one company may also entitle you to certain discounts.

Additionally, you may also get discounts for undergoing a defensive driving course, being an AAA member or staying with the same insurance provider for years. Of course, you need to check with your insurance provider for these types of discounts as these reductions may vary from one company to the other.