The number one way to reduce the cost of your car insurance is to have a good driving record. This means no collisions or moving violations within a specified time. Drivers receive points for moving violations, and even if all other features are equal, the more points you have the higher your insurance premiums will be. Insurance agents can give you more ways to reduce your auto insurance premiums. Some of the most common ways are:
• Insuring several vehicles or drivers with the same company may allow you to have a bulk rate for several cars so the overall cost is less than if each vehicle was individually insured. This is usually offered to families related by blood or marriage that live at the same address. It is not uncommon for families to have three cars, and they can get lower rates by insuring them with one company.
• Taking a defensive driving or accident prevention course is another way to reduce the number of points you have for moving violations. If a driver completes this course, many insurance companies will reduce the driver’s auto insurance rate. When this is combined with other methods for reducing the cost of car insurance, it can it can make a big difference. You need to make sure the courses are accredited in order to get the benefit.
• Reducing the number of miles you usually drive every day may help reduce your insurance cost. If you can use mass transit on certain occasions, or several times per week, you may be able to get a millage threshold discount when you can prove that you are driving less. People who drive a significant number of miles every day pay more than people who drive a few miles every week.
• Choosing the right vehicle can also make a big difference on the cost of car insurance. Some sports cars, big SUVs and modified cars cost more to insure than a smaller, safer commuter car. Previously owned cars may also be cheaper to insure than new cars. It is recommended to speak with your insurance agent before selecting your next new car. You may be able to reduce your monthly premium.
• Raising deductibles may also lower monthly payments. If you have an accident, the amount you pay for repairs before the insurance company starts to pay is the deductible. If this is higher, the insurance premiums may be lower. It is important to make sure you keep the exact amount of your deductible in a separate account so you have it if it is needed.
• Installing anti-theft devices in your car can help reduce insurance payments. These include car alarms, LoJacks and GPS devices to track the car if it is stolen. This may also include where you park your car at night. If you have a garage, your insurance should be lower than if you park on the street. You should make sure that the cost of installing anti-theft devices is offset by the reduction of your insurance.
There are several ways to lower the cost of auto insurance, and you can choose the ways that suit your lifestyle. A full service financial adviser can help coordinate the insurance for your vehicles, home and life and dramatically lower the cost of each.