(FinancialHealth.net) – Automobile insurance is a must-have when it comes to responsible car ownership. In most cases, it covers you in the event of an accident, whether you’re to blame or not. However, there’s a good chance that you’re not paying the lowest premium that you could be.
Many people don’t take advantage of discounts and cost-saving methods that are readily available. If you’re looking to save some money on your premium, here are a few simple ways to do so.
1. Consider the Type of Car You’re Purchasing
There’s no secret that some cars are more costly to insure than others. This especially applies to luxury and sports cars. Mercedes vehicles were among the top 10 on the list for 2020’s most expensive cars to insure. Generally speaking, the more expensive an automobile is to purchase, the higher the insurance rate.
When considering purchasing a luxury or sports vehicle, it may be a good idea to get a quote beforehand. This will allow for a general idea of what to expect when that insurance bill arrives in the mail.
2. Look at Comprehensive Coverage
Typically, having a new car whether it’s under loan or paid in full, it’s important to have both comprehensive and collision coverage. Comprehensive insurance covers any incident that’s not related to a collision.
For example, if the car is stolen and damaged beyond repair, comprehensive insurance will cover the vehicle. It also protects against damage sustained by natural disasters or when you hit an animal. Auto lenders do require this type of coverage during the life of a loan, and it’s also a good idea to keep it as long as the car has a decent market value.
Once the car reaches its final years, however, it’s not a bad idea to drop the comprehensive and stick with just collision. This can reduce a premium by several hundred dollars a year.
3. Keep Your Credit Score Up You might be wondering what your credit score has to do with your car insurance, and you’re not alone. The bottom line is if you have a lower credit score, insurance companies peg you at a higher risk and your premium price reflects it. Even if you’ve never had an accident or a ticket, you could potentially pay higher prices if your credit doesn’t pass muster.
4. Combine Policies
One of the best things that can be done to get a discount on an insurance premium is to purchase more than one policy through the same insurer. This can be multiple car policies, known as a multi-line auto, or even a car and home policy if you only have one vehicle. When bundling policies, the insurer typically offers a percentage off each type of insurance.
If any of these ideas strike a chord, do some research into what you’re currently paying and see if there’s a way to apply them to your situation. In addition, consider checking with different companies, they often offer special programs that can save money as well.
The only thing you have to lose is a few dollars off your premium, and that’s worth it.
~Here’s to Your Financial Health!
Copyright 2020, FinancialHealth.net