8 Steps to Minimize Your Auto Insurance Budget

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An average transaction price for light vehicles in the United States ranges around $33,543. Despite the high price, you can still lose the car as a result of an accident or theft. Taking a car insurance policy will compensate you in cases of such inconveniences. Considering that the law requires that each car has an insurance cover, it is wise to find a cheap but convenient auto insurance premium. Lowering your auto insurance premiums should not mean settling for a low-quality insurance cover. You can reduce your insurance cost while enjoying full insurance cover for your car. The following suggestions will help you save money on auto insurance.


1. Conduct a research to compare car insurance quotes
 
Car insurance companies and rates on their policies vary widely. Before contracting an insurance company, you should carry out a market analysis to find and compare insurance company with respect to affordability and quality of service. Contact friends and family members who have already used the services. Alternatively, call the insurance companies directly to inquire on their premiums. In the process of conducting your research, obtain at least three quotes from different companies. Be sure to choose the company with the best customer relations in sorting out emergency issues.
 
2. Before purchasing a car, compare their insurance premium costs
 
Before you buy a car, compare insurance premiums allocated for the car. Most people ignore the insurance premium as part of the overall budget of owning a vehicle. It is advisable to compare insurance premiums for different cars because they differ based on specific characteristics such as the car’s price and its cost of repair. 
Safety is another factor that you should consider before buying a car. Auto insurance providers give lower rates and discounts to clients who own vehicles that are considered safe. Similarly, vehicles that are easily damaged result to high insurance premiums.
Vehicles that are highly vulnerable to theft are more expensive to insure. So if you aim for lower premium rates, carry out a thorough research to establish the premium rate that your car is likely to attract.
 
3. Decide on a suitable deductible 
 
A deductible is an amount you pay before making a plan on your insurance policy. Higher deductibles will lower your premium rate. 
 
4. Reduce coverage on older cars
 
If your vehicle is old and your annual premium rates are 10% more than its value, you should drop the coverage. In the case of insuring an old car, possible claim payments that you may receive, in the event you suffer a car accident, are likely to be less than the premiums you had paid.
 
5. Choose one insurance company for homeowners and auto insurance
 
An insurer will often offer you a discount if you purchase both the home owner’s policy and auto coverage from the same company. 
 
6. Maintain an excellent credit rating
 
Your credit history communicates much about you. Drivers with good credit history are subject to minimal accidents. Many insurance companies will always track your credit history when calculating your rates. It is advisable to check your credit record regularly to ensure that you maintain a good history. 
 
7. Select your desired coverage wisely
 
Insurance policies fall into five distinct categories. They are described below with crucial points to consider when deciding on the coverage to purchase.
• Liability insurance covers damage and medical bills when an accident occurs. The State laws require that all state drivers bear liability insurance. While a liability insurance cover is crucial, you will be in a better position if you take a wider coverage that guarantees you extra protection.
• Collision coverage takes care of damages that result from impact with another vehicle or an object. For cars that are older and of little value, it is advisable to omit this policy.
• Comprehensive coverage covers cases of theft or loss that are not related to an accident. The policy is suitable for cars on lease.
• Personal injury protection cover takes care of a driver’s medical bills and those of passengers involved in an accident.
• Uninsured/ underinsured motorist protection covers your expenses if you are involved in an accident with an uninsured or underinsured driver. The cover is cheap and worth buying.
 
8. Check out for discounts
 
Auto insurance companies such as Sysive offer discounts for policyholders who attain certain achievements. Such achievements include:
• Drive fewer miles than average motorists
• Have not been engaged in an accident for a specified period
For motorists living in UK, contact Classic Car Insurance to get affordable, yet reliable auto insurance cover.

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Author Bio:

Anand Rajendran is a freelance writer living in Chennai, India. His interest in personal finance and budgeting began when he was earning an MFA in theater, living in one of the most expensive cities in the country (Chennai, TN) on a student’s budget. Today, he writes for a number of websites and keeps up his own Classic Car Insurance company named Sysive in UK.

July 14, 2016 |

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