understanding your insurance policy

understanding your insurance policy

How To Lower Car Insurance Premiums

by Tuĝba Van Den Heijkant

Many vehicle owners are concerned about whether they have chosen the right coverage or if they are dealing with the right insurance provider. Apart from that, one of the major concerns for car owners is the cost of car insurance. The following strategies will help you lower your car insurance premiums.

Maintain a Good Credit Record

Many people think that maintaining a good credit record only applies when you want to secure a loan. However, good credit history can significantly reduce your car insurance premiums. Many insurers set the prices of auto insurance policies based on credit information.

Insurance companies consider people who settle their credit effectively to have a lower risk than those with a bad credit score. To have a good credit standing, make sure you settle your bills on time and keep your credit balances at a minimum. This will help you get affordable car insurance rates.

Bundle Your Insurance Policies

A good strategy for lowering auto insurance premiums is buying all your policies from one insurance provider. For example, you can buy auto and homeowner's insurance from the same provider. Since insurers want you to bring them more business, they will reward you with great discounts for multiple lines of coverage.

Conduct research on the insurers who will offer high discounts when you bundle your policies. Some insurers will even give you discounts on several of your policies with them.

Choose Cars That Are Cheap to Insure 

When choosing the car you want to buy, compare car insurance rates. The vehicle you drive affects your insurance rates. Sports cars, luxury cars, and expensive roadsters attract high car insurance than safer SUVs and mini-vans.

Additionally, if your car has safety features like airbags, antilock brakes, anti-theft systems, and engine cut-offs, these will reduce your insurance costs because these cars are less likely to be vandalized or stolen. Also, if your car has safety features, you will hardly sustain serious injuries during an accident.

Insisting on Higher Deductibles

It's advisable to raise your deductibles. Instead of paying the standard $250-$500 in deductibles, consider $1,000-1500 to lower your premiums.

However, if you raise your deductibles, ensure you have an emergency fund stashed away to cater for costs arising after an accident. Many people are comfortable paying higher premiums to protect themselves from high out-of-pocket expenses in the event of an accident. 

Other strategies you can use to pay lower car insurance premiums include taking a defensive driving course, driving safely, and eliminating unnecessary coverage. Also, make sure you compare the quotes of different insurance providers to get the best price.


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understanding your insurance policy

You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.