Car insurance is one of the most expensive expenditures that people hope they never have to make. While it’s always necessary to get the correct coverage, insuring a brand-new car is far more expensive than insuring a five-, seven-, or nine-year-old model you’re replacing. Here are some helpful hints for keeping your premiums low without incurring undue risks.
Perform an annual rate check
If you’ve been with the same insurer for a long time, it may be difficult to surpass its prices, especially if you haven’t had any recent claims. In fact, according to a 2014 Consumer Reports National Research Center poll, only 10% of 19,000 ConsumerReports.org subscribers who evaluated premiums discovered that switching insurers would save them money.
Online comparison sites such as Answer Financial, Insure.com, Insweb.com, and NetQuote make it simple to compare multiple insurers. You won’t normally get an instant price online, but you will receive emails from agents looking for your business. Consider working with an independent agent who will check rates with a variety of carriers on your behalf.
Choose a Top-Rated Insurer
Finding the cheapest premium isn’t the only way to save money. Some insurers charge lower premiums but wind up costing you more in the long run by underestimating damage estimates, pressuring repair shops to cut corners, and making you pay more for original-equipment replacement components. They may even unfairly raise your premiums following a mishap.
We polled 64,872 ConsumerReports.org members who made a claim between 2011 and 2014. Eighty-eight per cent of them were extremely satisfied with the way their claims were handled. USAA, Amica, and NJM were among the highest-rated organisations, with overall satisfaction scores of 90 or above.
Determine the Appropriate Deductible
A greater deductible lowers your premium by requiring you to pay more out of pocket if you file a claim. Raising your deductible from $200 to $500 will reduce your collision insurance cost by 15 to 30%. If you get to $1,000, you could save 40%. If you have a clean driving record and haven’t been in an at-fault accident in years, if ever, choosing a larger collision deductible may be a sensible decision. Just make sure you have enough money to cover the cost if your luck runs out.
Examine Your Entire Coverage
Your liability insurance covers bodily harm and property damage caused by you in an accident. Don’t leave yourself exposed by lowering your liability limits to the state minimums. Purchasing extra coverage may appear to be an unusual approach to saving money, but the reward comes in the event of a pricey claim, which can jeopardise your life’s savings.
You don’t need to pay for rental-reimbursement coverage if you have another car that you may drive while your vehicle is being fixed. If you have a better price on an auto-club membership or if it’s included in your new car’s warranty, skip the roadside assistance.
Controlling the Risk of Teen Drivers
Adding a teen to your policy might increase your premiums by 50 to 100 per cent. Before obtaining a driver’s licence, ensure that your child has completed a safe-driving course. Make it a rule that reckless driving will result in the termination of driving privileges.
Notify your insurer if your child is not licenced, or if your child is a college student who lives more than 100 miles away and does not have a car.