How You Can Outsmart the Rising Insurance Premiums this Year
Once you sign up for car insurance, it is easy to let the months and years pass by as payments are taken out of your account every month. You might sit back while your premiums get higher and higher until one day you realize you are paying an outrageous amount for your insurance. The best way to outsmart the rising insurance premiums is to pay close attention to changes in your policy, changes in the market, and to compare insurance quotes and companies. The ideal policy is one that will potentially save you a significant amount of money in case you ever need to deal with an unfortunate accident. Keep reading for a few helpful ways to outsmart the rising car insurance premiums in 2015 and once again be happy with your payments.
Compare Before Purchasing
Whether you want to buy a new or used vehicle, it’s important to compare different insurance costs. Overall, your insurance premium is partly based on the following factors:
- Vehicle’s make and model
- Its general safety record
- The probability of theft
- How much it costs to repair
Most insurance companies typically offer discounts regarding key features that decrease the risk of theft or injuries. Some will provide discounts and savings for anti-theft devices, daytime running lights, and air bags. If you’ve been with the same agency for years, and have only watched your premiums grow, it might be time to compare your payments to those at other companies. See what other agencies have to offer.
Decrease the Coverage on Older Vehicles
It doesn’t make much sense to pay for collision coverage on vehicles with low value since the cost of insurance may exceed the amount of money you could potentially receive on a claim. In order to get an accurate value of a particular vehicle, refer to Kelley Blue Book (kbb.com) online.
Maintain a Good Credit Score
In some states, your credit may affect your auto’s insurance rates. While safe driving habits are in fact the best way to maintain low insurance costs, slowly repairing a less-than-stellar credit rating by consistently paying bills on-time and using credit responsibly can help you immensely both on and off the street. Speak with a financial expert to get advice about how to improve your credit score, and approach your insurance agent with your new score after it has improved.
Request a Higher Deductible
Deductibles symbolize the amount of money paid before insurance policies take effect. By asking for a higher deductible, you can substantially lower your insurance costs. For instance, by raising your deductible amount from $200 up to $500, it would decrease your cost of coverage for collision and comprehensive by as much as 15 – 30 percent. Furthermore, by choosing a $1,000 deductible, the savings are potentially even more. In fact, raising your deductible is one of the most practical ways to decrease the amount of your premiums, but not if it means financial risk. This is why an emergency fund is so important. You need to put aside enough money to cover your insurance deductibles at a bare minimum.
Take Advantage of Other Available Discounts
Many insurance companies offer substantial savings when policy holders have multiple policies. In some cases, you can also save by taking a defensive-driving course or receive additional discounts from driving accident-free over time. Some agencies offer discounts for students, veterans, and other individuals, so it never hurts to ask if there are any discounts you might be eligible for.
It can be tough to assess your own insurance payments and decide if it is time for a change, however, by doing a little of your own comparison research and speaking with your insurance agent, you should be able to find several ways to lower your payments. By being an informed policy holder, you can ensure that you aren’t paying more than necessary, and might be able to save a little each month after adjusting your policy or payments. The information for this article was provided by the professionals at Steers Insurance Limited, who provide car insurance in Grand Falls.
Category: Car Insurance
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