Saving Money on Car Insurance
Published: 10/22/2010 by AutoShopit
If you know the ways to save on your car insurance, you won't have to pay big bucks on something you may not need. The basic purpose of car insurance is to aid in emergency situations like accidents. It also follows that if you are a very careful driver and someone that follows all the traffic rules, you may not end up using it right? However, if you are the reckless type, you definitely need one. Well, emergencies arise without notice. Hence, it’s a wise choice to have one for unexpected happenings, not to mention it's the law in Canada to have insurance.
According to different surveys, more drivers are paying too much for car insurance cost. This would not be the case if most drivers know the different ways to save money on their car insurance.
- Know if you are really paying too much. Some car owners don’t know if they are paying too much on their car insurance. Well, there are different payment terms for insurance. If you are an annual payer, divide the annual cost by 12 so you know how much you are paying per month and if it is hurting your budget.
- Do insurance shopping. Different insurance companies offer their insurance product at different costs but with almost the same benefits. Insurance cost varies based on vehicles and zip codes. Every year, the rates may change and it is vigilant to look around every now and then.
- Don’t let your insurance expire. Stay insured and don’t let your insurance policy lapse without renewing it. Renewal of a lapsed policy may cost more than the original one.
- Have an inexpensive vehicle. The luxurious your vehicle is, the higher the repair costs and the beautiful it is in the eyes of thieves. It will also need higher insurance cost to cover any emergency possibility that may happen to your lucrative car. There are available documents to know the risk levels of different cars. You may want to know how risky your vehicle is.
- Demand for higher deductibles. The deductible in your insurance is the amount of money you need to fork over before you ever use your insurance in different situations. By increasing your deductible of $300 to $600, your collision and comprehensive coverage can be lowered to at least 15 to 30 percent. If ever you could raise it to $1000, you’ll have 40 percent lowered coverage.
- Get only the insurance coverage you need. At least once a year, review your insurance coverage with your agent so you can drop that coverage you don’t need. In case you are driving an old model vehicle, you can perhaps think about total dropping your collision and/or comprehensive coverage. Your old car may not be worth repairing at all or may cost a lot from you on different services.
- Be a Safe driver. If you have never been involved in an accident, your insurance premium won’t increase. However, if you get into an accident and it was your fault, there is a resulting increase in your insurance premium, some for 2 and others for 3 years. If there is a minor accident and your vehicle is slightly damaged, consider paying the repairs from your pocket especially if it only cost a hundred dollars or so.
- If you can, drive less. Some companies offer 5-10 percent less if you have driven 5,000 to 7,500 miles for the whole year.
- Don’t go for other unnecessary offers. Some insurance companies offer training courses, anti-theft devices and other stuffs. They may be very enticing but if you don’t need it, don’t buy them.
- Avoid violating traffic rules. Tickets issued due to moving and speeding violations like accidents, can increase your premium for 2 to 3 years.
If you take the advice given in this article you will find that you can keep your car insurance under control and enjoy the benefits of having a car without breaking the bank.