Car insurance is compulsory if you own a vehicle, but many people appreciate it after they are involved in an auto accident. However, many car owners strive to make savings on car insurance. Here are some pointers on how to save on auto insurance.
Improve Your Credit
The first smart move towards getting lower car insurance rates is improving your credit score. In some cases, insurance companies pay more attention to your credit score than your driving record. However, in some jurisdictions, insurance companies are forbidden from setting rates based on a driver's credit score.
To improve your credit, make sure you pay all your credit card debts and loans on time. Also, ensure your credit card balances are lower than your credit limits. You should also minimize the number of credit accounts you have.
Increase Your Deductible
Higher deductibles translate to lower monthly payments. This can ultimately lead to huge savings. Try to raise your deductible. Furthermore, if you experience a minor fender bender, pay out of your pocket to repair the damage if you can. This will help you avoid an increase in your auto insurance costs. The savings you earn with deductibles vary depending on the insurance company. Therefore, compare quotes with varying deductible levels.
Seek Out Discounts
Insurance companies offer discounts to their policyholders. For example, some companies will offer discounts to customers who have not been involved in any accident or traffic violations over a certain period of time. Some insurance companies also give discounts to drivers who have been trained in defensive driving.
Additionally, if your policy covers a young driver who is a student or who has taken a driving course, you may get a lower rate. If your car has special features like theft protection and anti-lock brakes, you may also stand to get huge discounts. Ask your insurer what discounts you qualify for.
Use Mass Transit
Another strategy that can help you save on car insurance is reducing your mileage. When you are signing up for insurance, the company will ask you about the number of miles you drive your car per year. If you commute for long hours every day, you are likely to pay higher insurance premiums than a person whose mileage is a mile a day.
One way to keep your mileage low is to use mass transit to commute to work. Remember, you qualify for a discount if your mileage decreases significantly. Therefore, inquire about the insurer's different mileage thresholds so you can set realistic targets.
Contact a car insurance company to learn more.
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