Car ownership comes with a ton of responsibilities and expenses. These expenses include car registration, maintenance, and car insurance. To cut these costs, some car owners may choose to forgo minimum liability insurance requirements, which put them at risk financially if they're involved in an accident.
You can do a few things to lower your car insurance costs without skimping on coverage. Discover some tips to reduce your car insurance premiums.
Invest in Vehicle Security and Safety Features
Insurance providers consider your possibility to file future claims when setting rates. If you invest in car security features that lower the likelihood of theft or vandalism, your insurer may offer you a discount.
Some common car security features that could lead to a discount include:
- GPS tracking devices
- Immobilizing devices
- Alarm systems
- Anti-theft devices
Besides vehicle security features, the insurer considers the likelihood of your car getting into an accident to establish your eligibility for discounts. For instance, if your car has a lane departure warning, automatic braking features, blindspot warning, and pedestrian detector, you could get a discount.
Compare Auto Insurance Quotes
Don't just settle for the first insurance provider you come across. Instead, compare quotes to get a better sense of the average rate in your area and what factors impact your premium.
Some things to keep in mind when comparing auto insurance quotes include:
- The type of coverage you need
- Your vehicle's make, model, and year
- Your driving history
- Your claims history
- Any discounts you may be eligible for
Increase Your Deductible
If your budget allows, you may opt to cover a significant amount of damage incurred in case of an accident. Deductible means that you will share the cost of damages with the insurer, such that the more deductible you pay, the lower the damage your insurance will cover.
For example, suppose you have a $1,000 deductible, and you are in an accident that results in damage worth $2,000. That means you will cater to $1,000 of the costs, and the insurer will cover the rest. So, if you decide to increase your deductible to $1,500, in this scenario, your insurer will only pay $500 for the damage, which directly translates to lower premiums.
Drive Less
The amount of time you spend behind the wheel is a factor that impacts your premium. If you drive less, you're considered lower risk and may be eligible for a discount. Also, if you drive less, you lower the vehicle mileage, which can lead to reductions in maintenance costs. You may opt to carpool, ride a bike, take public transportation, or telecommute for work to reduce the amount of driving.
Entrust an Independent Insurance Agent
Some individuals assume that going directly to an insurance company is the best way to get a policy. However, this isn't always the case. Working with an independent insurance agent could help you save on your premium. First, independent insurance agents don't work for one specific company, so they can offer unbiased advice and help you find the best policy for your needs.
Furthermore, independent insurance agents have access to multiple companies, so they can compare rates and coverage options to ensure you're getting the best deal.
Keep the above tips in mind as you shop around for a policy to get the best coverage without compromising your budget. Also, note that you shouldn't go for the cheapest insurance in the market. Instead, look for quality to ensure it can cover you and your car adequately.
Germain Insurance Agency is your go-to car insurance agency in Minnesota. We aim to help you get the best coverage for the best price. Contact us for a quote.
