Nowadays, Car insurance rates are exorbitant. This high rate makes a lot of families really struggle to pay the car insurance bill each month. Having a low insurance rate would help free up some money to be used to cover other bills. Now I must state that providing sufficient insurance protection should be your topmost priority when securing coverage for your car. Many people underinsured their cars because they made getting insurance rates be the dominant factor when deciding on an insurance than securing sufficient coverage for their car. It’s not easy to get affordable car insurance. However, Not having sufficient coverage would leave you in an unfortunate financial position, should anything bad happen to your car. Having said that, in respect to today’s economy where every penny matters, the need to get cheap insurance rates is understandable and so is it’s importance to most drivers.
So what is the solution? You want to be sure to have adequate car insurance coverage, but you do not fancy spending too much on it. Listed below are a few tips;
Before I get started though, it’s important to know that car insurance rates are based on an assessment of risk. They diversify their rates based on their evaluation of the risk posed by a particular motorist driving a particular vehicle.
So, if you reduce your risk, you reduce your car insurance and increase the chance of a more affordable car insurance. Simple.
1) Different cars attract different auto coverage rates. Some cars are at a greater risk of being stolen and so attract high rates compared to a car that the risk of being stolen is little, examples of such cars are high-powered cars, sports cars and collections vehicles. To lower your rates, consider, changing your high-risk car for one that generally attracts little risks.
2) A spotless driving record goes a long way in helping reduce your rates. It’s all about assessing the level of risks a driver posses to the insurance company. Are you a safe motorist? Do you adhere to the speed limit? Are you at risk of other driving crimes? Your risk profile is a direct consequence of your driving record. An unblemished driving record ensures you are rewarded with cheaper rates. A bad driving record and you will be penalised. Many people do not consider the consequences of speeding tickets and driving offences until they see their subsequent car insurance bill.
3) Are you prepared to drive less? Could you carpool or use public transportation to go to get around? Car insurance companies consider the amount of driving their clients have to do when assessing their car insurance rates. Why? Fewer miles driven equals less risk as your chances of getting into an accident is reduced. Less risk equals lower rates.
4) Consider installing a Theft Deterrent System in your vehicle, If you have an alarm installed, you’ll pay less to insure your vehicle. Before buying an automobile, ensure that it has all protection features such as airbags, traction control, head restraints and is well protected against impacts.
5) Still on the issue of risks, What you do for a living is also considered, Insurance companies keep an occupational database and depending on what you do, this can affect your premium. For example, if you are a secretary or work in a library, chances are you are a low-key person and therefore of little risk to them. However, if you answer that you are a musician or are other occupation that requires traveling frequently, chances are your premiums will be quite a bit higher as you will be felt to be a greater risk.
6) What is Your Marital Status? If you are under 30 and unmarried, you are considered to be a higher risk, thus, your insurance will cost more. Married people are judged to be more stable and responsible by car insurance companies.
7) Your willingness to attend driver training courses, a lot of car insurance companies offer specific discounts for motorists who have attended a course. Why? Lower risk.
8) Group insurance. Many people are aware of group insurance coverage for health insurance, few however are aware that the same opportunity is available for securing car insurance policies as well. Going through a business group, social networking group or your employer to combine your auto coverage with a group of other people would greatly reduce your rates. Look into all of these avenues before acquiring coverage on your own.
9) Loyalty programs. All auto insurance firms will give you significant discounts on your premiums if you have another coverage with them. The largest discounts will be awarded to people who hold both an auto policy and a homeowners policy.
So if car insurance costs are an issue for you and your family, these are steps you can take to reduce them. These are just a few; there exist many more. Know that Cheap Auto insurance rates are not set in stone and there exist cheap car insurance companies out there.