You Need Car Insurance But It Doesn’t Have to Be So Expensive!
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.
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 at the top of the list for 2018’s most expensive cars to insure. Generally speaking, the more expensive an automobile is to purchase, the higher the insurance rate. If you’re considering purchasing a luxury or sports vehicle, it may be a good idea to get a quote before you splurge. This way, you have a general idea of what to expect when you receive your insurance bill in the mail.
Look at Comprehensive Coverage
Typically, when you have a new car whether it’s under loan or you paid in full, you want both comprehensive and collision coverage. Comprehensive insurance covers any incident that’s not related to a collision. For example, if your car is stolen and damaged beyond repair, comprehensive insurance will cover your vehicle. It also protects against damage sustained by natural disasters or if 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 your car has a decent market value.
Once your car reaches its final years, however, it’s not a bad idea to drop the comprehensive and stick with just collision. This can reduce your premium by several hundred dollars a year.
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.
One of the best things you can do to get a discount on your 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 you bundle policies, your 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 you can apply them to your situation. In addition, consider checking with different companies, they often offer special programs that can save you 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!
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