If you drive, then getting auto insurance for your car, van or truck is not only a legal requirement, but it will also ensure that you are financially protected in the event of an accident on the road.
Auto insurance can pay out if you are at fault in an accident that causes damage to somebody else’s vehicle or property or in the event of an accident where the other party was at fault but has fled the scene, leaving you with no information on them or their insurance company.
However, while it is necessary for all drivers, auto insurance can be one of the most significant regular expenses you will need to pay for your car.
Whether you are buying a new car and want to get a new insurance policy for it or are thinking of changing your current insurance policy and want to find a better deal. The good news is that there are several things that you can do to bring the cost of your auto insurance down.
Shop Around
The price of auto insurance policies can vary between insurers, so don’t just stick with the same company each time your policy is due to be renewed. It can be worth spending some time shopping around and getting different quotes for your auto insurance to find one that offers the best value.
Some policies offer more than just insurance; for example, you can get AARP insurance from The Hartford. Their AARP insurance offers perks like a 24/7 car insurance claims hotline, lifetime car repair assurance, assistance with things like house cleaning, food preparation, and even dog walking if you are involved in an accident that puts you out of action for a while, and new car replacement cover.
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Raise Your Deductible
The deductible, also sometimes known as an excess, is the fee that you will need to pay in the event of a claim before your insurance policy pays out. Generally, it is deducted from the insurance payout. For example, if you claim for an accident worth $5,000, and you can have a deductible of $500, your payout will be $4500.
The higher the deductible, the less you will usually pay for your insurance policy, so it’s worth increasing it to as much as you are comfortable with. Before you do this, however, make sure that you are going to be in a financial position to make up the difference if the deductible means that you are short in the event of a payout.
Drive Less
The lower your mileage, the cheaper your auto insurance will usually be since you’re not on the roads as much and are, therefore, at a lower risk of being involved in an accident.
Along with saving money on your auto insurance, driving less can also have many other benefits, including making considerable savings on fuel and keeping you healthier if you decide to walk or cycle instead.
Check Your Information
If you’re currently in the middle of an insurance policy and it’s not yet time to renew it, it’s good to see if you can save any money by checking the information that the insurance company holds on you.
If your information is wrong, changing it is not only a legal requirement to ensure that the insurer has up-to-date information on you, but it could also save you money.
For example, if you have changed jobs since you first took out the insurance policy and now work from home rather than driving into an office, this could reduce your premium since you’re not driving during peak times anymore and are at a lower risk.
Your marital status, whether or not you own a home, and where your car is parked at night can all impact the price of your policy, so check it regularly to make sure that any changes are entered.
Buy a Safe Car
Are you in the market for a new car as well as a new car insurance policy? If this is the case, then you are in an excellent position to go car shopping with your car insurance policy in mind. Before you buy a new car, it’s a good idea to get some auto insurance policy quotes first to have a better idea of how much it’s going to cost you, since insurance prices can vary a lot between different makes and models of cars.
Buying a safer car is almost always going to help you get a discount on your car insurance policy since insurers will view you as having a lower risk. Look out for cars with safety features like automatic braking or reverse cameras.
Related: How To Save Money When Buying a Car
Get a Dash Cam
These days, more and more drivers are using dash cams, especially those living and driving in busy, built-up areas where accidents on the road are often more common. Having a dash cam installed in your vehicle will not only give you peace of mind when it comes to protecting your car from damage and theft as it acts as a deterrent, but you could also get a discount on your auto insurance policy.
Many insurers offer lower prices to drivers with a dashcam fitted to their car as these devices can make the entire claims process much more manageable. If you are involved in an accident on the road, your dashcam will capture the footage, which you can then send to your insurance company to investigate.
Before this technology, insurers had to rely on witness testimonies and any CCTV that might have been in the area, which made the process harder.
No matter what kind of car you drive or how long you have been driving, auto insurance is essential. Since this is one of the highest costs that most drivers face when they get behind the wheel, it’s worth knowing all the different strategies that you can use to potentially save some money on your auto insurance policy while still being protected.
