Forbes Advocate

6 tips for cutting car insurance costs

There are many ways to reduce car insurance premiums, including shopping around and keeping your car in a safe place. Photo: Adobe Stock.

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Car insurance premiums may vary depending on various factors. Typically, insurance companies consider the driver's age, driving record, location, credit score, and type of vehicle to determine the monthly premiums.

Although such factors contribute to how much you need to pay for car insurance, you might also be paying for unnecessary coverage. For example, if you recently purchased a new car, some financing companies will need you to carry full coverage.

Luckily, there are ways to cut car insurance costs. Even if car insurance is mandatory in many regions, it doesn't mean that you have to pay a fortune for it.

Here are the tips you should know to reduce your car insurance costs.

1. Shop around

As mentioned, car insurance prices may vary widely, so it pays to shop around. If possible, compare various car insurance quotes by calling your preferred insurance companies or get information online.

Because you purchase car insurance coverage to experience peace of mind and protect yourself financially, it's critical to avoid shopping by price alone. Hence, selecting a financially stable company is vital. Check online rating websites or ask around about the insurer's financial health.

2. Select your car carefully

Insurance companies focus on your car type when calculating your monthly premiums. More often than not, expensive cars like electric vehicles are costlier to insure than the conventional models because the more impressive the car models are, the more they'll stand out, attracting vandals and thieves.

Expensive cars also cost more to repair, so they require costly insurance. Therefore, check how much a specific model may cost to insure before purchasing a car.

3. Keep your car safe

Insurers will provide you with an affordable premium once you do your best to keep your vehicle out of harm's way. Thus, keep your car in a secure driveway or garage to avoid vandalism or theft.

You may also reduce car insurance costs by installing or improving your car's security features. For example, you can install a tracker or a quality-made car cover.

Keeping a clean driving record and healthy credit score can significantly reduce the car insurance premiums you will pay. Photo: Adobe Stock.

4. Maintain A Good Credit Score

Another way to cut car insurance costs is to maintain a good credit score. Many insurance companies use credit information to price car insurance policies because people with good credit often have fewer claims.

To improve your credit score, never take more credit than what you need, pay your bills, and try to reduce your credit balances. Checking your credit record regularly may also come in handy to correct possible errors promptly and keep your record accurate.

5. Look For Discounts

Most auto insurance companies offer discounts for maintaining a good driving record and insuring multiple vehicles. Besides, several providers offer more discounts if you have a vehicle with safety features and anti-theft devices.

Other insurance providers may also give discounts if you drive a low mileage yearly. If you're unsure about the discounts you can consider, reach out to an auto insurance agent to cut your coverage costs.

6. Be A Responsible Driver

Being a responsible driver is an excellent way to keep your car insurance premiums low. You may achieve it by avoiding accidents and traffic violations.

Generally, traffic violations stay on your report for three years. You might want to be careful about such issues to get better rates for your monthly premiums.

You don't always have to file a claim if something happens. For instance, your car may suffer dings and scratches due to someone else's negligence. In this case, filing a claim to fix such damages isn't worth the excess needed. So, the best solution is to pay for the repairs or let the negligent party take care of the expenses.

Taking accredited or approved defensive driving courses may also help you score points from your insurance provider.

However, ask your insurer about this before you sign up for one because not all companies may offer you better deals for taking driving classes. This way, you'll know whether or not spending on defensive driving courses will be worth your time, money, and effort.

Car insurance doesn't have to be expensive. Moreover, cutting your car insurance costs is possible with the tips discussed in this article.

Remember to maintain a good credit score, take care of your vehicle regularly, and shop around for the best possible options available. Being a responsible driver can also make a difference in reducing your car insurance costs.

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