As the cost of living continues to rise, you are probably looking at potential ways of saving money. One way you can cut costs is by readdressing your car insurance.
While you probably know that things like raising your deductible can help you to lower the cost of your auto insurance, there are also various little-known ways in which you can make big savings.
Improve Your Credit Rating
Most people know that they can make savings on their auto insurance by maintaining safe driving practices. The safer you are, the more your insurer will deem you to be less of a risk on the road.
But many drivers do not realize that improving their credit scores can also lead to insurance companies considering them to be a lesser risk.
Insurers consider credit ratings when determining insurance premiums because studies show people who manage their credit well make fewer insurance claims.
Therefore, by taking active steps like paying bills on time and not getting into debt, you could save big on your car insurance.
If you currently have a poor credit score, check out these helpful tips for improving it. It is also a good idea to check your credit score regularly to ensure all information is accurate.
Enroll in a Defensive Driving Course
Defensive driving courses not only allow you to become a better and safer driver. They also enable you to potentially get a lower auto insurance rate.
However, before you sign up for a course, you need to make sure that your insurer will provide you with a discount for successfully completing the course.
You also need to ensure the course is approved by your insurance company for the state you are in, as different states have different rules about accredited defensive driving courses.
Get a Discount for Installing Anti-Theft Devices
Another little-known way of making big savings on your car insurance is to install anti-theft devices. Indeed, some insurers provide potential savings of as much as 25%.
Ask your insurance company which specific anti-theft devices could enable you to get a lower insurance rate. Typically, installing LoJacks and car alarms can enable you to qualify for a lower rate.
However, before you go down this route, weigh up the cost of installing such devices with the savings you will make on your insurance to ensure it is worth your while.
Install a Telemetric Device
Installing anti-theft devices is not the only installation option that could help you to save big on your auto insurance. Some insurers offer lower rates to drivers who install telemetry devices.
The devices record how much you drive, the times that you drive, and how well you drive. If you drive less than 10,000 miles per year, installing a telemetric device can make a lot of sense.
Just make sure you find out how much you can save, by asking your insurance company, before you choose this option.
If you do not drive much and you always drive safely, you could make significant savings on your insurance by signing up for a telemetric program.
You Could Get a Discount if You Drive Less Than the Average Driver
If you use your car less than most drivers use their cars, you could be eligible for a discount on your auto insurance.
Many insurers offer savings to motorists who drive less than the number of miles clocked up by an average driver over a year. So, if you do not use your car that often, ask your insurance company if you can get a discount.
You Could Qualify for Multi-Car Discounts
If multiple vehicles are registered at the same address by people to whom you are related by blood or marriage, you could enjoy substantial savings on your auto insurance.
Sometimes, even unrelated people who live at the same address can qualify for savings too.
Getting individual insurance for each vehicle at the same address can be a lot more costlier than covering them all under the same insurance policy.
So, make sure you ask your insurer about multi-car discounts if you live with other people who own cars.
Downsize Your Car
One option to save money on your car insurance that many people do not consider is downsizing your vehicle.
Some cars cost a lot more to insure than others, so familiarize yourself with the variations in price, by asking your insurance company, and then look at changing your car to a model that makes more financial sense from the point of view of your auto insurance.
Insuring a top-of-the-line car can be a lot more expensive than insuring a smaller commuter car. Also, many insurers are starting to provide discounts to motorists who drive hybrid cars.
Compare Different Insurance Companies
Okay, comparing different insurance companies to find the best auto insurance is not exactly a little-known method of saving money, but it is worth pointing out anyway; especially as many drivers do not take the time to shop around.
Thankfully, when you use a reputable online comparison site, comparing insurance prices does not take as much time and effort as you may think.
Whatever your circumstances, you can potentially make big savings by simply comparing different insurers.
Also, if you need SR-22 insurance, which is a certificate that proves to the Department of Motor Vehicles that you have obtained and will maintain car insurance coverage, and which is needed after you have committed a serious violation like a vehicular assault or DUI offense, shopping around can help you get affordable SR-22 car insurance. CheapInsurance has you covered. The experts associated with the matter say that simply use the CheapInsurance site to find the best rates for SR-22 insurance.
If You Are Planning on Relocating, You Could Make Substantial Savings on Your Car Insurance
Lastly, it is worth pointing out that car insurance in some states is cheaper than in other states. While you probably will not want to move location simply to save on your car insurance, if you are considering moving anyway, you might like to take your insurance costs into account. By moving to a specific state, you could save big on your auto insurance.
