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7 Tips to Reduce Car Insurance Costs

Foraying into the world of adult responsibilities can become overwhelming. You have your monthly duties and finding ways to save money becomes a pressing corner.

Thankfully, you don’t have to cut too many corners to give a little extra for your personal luxuries! Saving money on your car insurance is easy and quick, and we’re here to give you a few tips on how to get started with that.

Here’s the mistake most drivers make: they don’t take the simple step of looking around and finding the best insurance to cover their car’s needs.

Instead of just accepting what’s been spoon-fed to you by your car insurance company, take the time to shop around for a premium that’s bound to get a bang for your buck. There are even a few no-deposit car insurances available!

Here are a few steps to help you reduce your car insurance costs:

1. Keep your Driving Record Squeaky Clean

This won’t just keep your well-being in check, everyone around you will thank you for looking out for their safety as well. Apart from its obvious security benefits, driving safely can help you attain a lower rate for your car insurance.

Your driving history is one of the most influential aspects of how automotive insurances are calculated. If you’ve slipped up and committed a few offenses, you can expect that your insurance rate will be comparatively higher. So, stick to driving safe and your bank account will reap the benefits.

2. Choose the Right Car

A Toyota Corolla can get a lower insurance rate compared to a brand-new Porsche. This is because the value and make of your car have a great impact on how your insurance cost can be calculated.

A quick tip here is that insurers charge a lower rate for cars that are more commonly driven compared to luxury vehicles. This is because insurance providers tend to pool policyholders with the same vehicle model when they create insurance plans. So make a smart decision about the car you buy!

3. Keep a Good Credit Record

Once your credit history is found to be established and credible, insurance companies are sure to score you well on this criterion. To ensure you’re getting the best insurance deal possible, double-check if you’ve paid your bills on time and routinely check your credit history.

A glimpse into your credit history can give your insurance company reassurance and can work wonders for your premium.

4. Drive Less

If you’re an infrequent driver or if you often take advantage of carpooling opportunities, let your insurance agent know. Spending less time on the road can translate to being less prone to road accidents and can lead to a lower premium for you – a quick tip if you’re looking to earn a low-mileage discount!

Check out commuting opportunities or even walking to nearby locations! Not only will you have a positive impact on the environment, but you’ll also be doing your insurance cost a favour too.

5. Lower your Coverage on Older Cars

If you drive an older car, consider dropping your comprehensive or collision coverages. If it’s worth around 10 times less than your premium, purchasing coverage may not be the smartest move for you. Research the current market value of your cars and get the corresponding plan it needs.

6. Don’t Forget to Ask About Discounts!

Some companies offer discounts for drivers who get insurance coverage through a group plan care of their employers, or other organizations and associations you may be a part of. Ask your company or other organizations you’re a part of if this would be possible.

Low-mileage discounts are also offered to some motorists who drive longer than the average number of miles per year.

7. Watch Out for Cars that are Insurance Traps

If you’re thinking about changing your car, consult with your insurer first if the model you’re eyeing will have an impact on your premium.

Sporty, luxurious cars attract higher premiums, and something as small as a different model or a smaller engine can turn the insurance tides in your favour. You won’t just save on your car insurance costs; It can probably save you from petrol costs as well!

Don’t be Afraid to Ask as Many Questions as you can.

A car is an investment, and car insurance is the safety net to make sure that you’ll get as many years out of it as you can. It pays to know everything about your car and the premium you pay, so ask every question you have to make sure you’re not pouring out money into unnecessary coverage.

Do you have any other insurance cost-cutting hacks to share? Let us know in the comments!

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