How to Get Better Car Insurance Coverage for Less
The monthly premium that you have to pay to insure your car depends on a few key factors, including your age, marital status, where you live, and of course what kind of vehicle you drive.
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Though you might not be able to change how your age, marital status, and current city affect your premium, you can qualify for auto insurance discounts by choosing a car that costs less money to insure.
The following tips can help you to save money on auto insurance.
1. Know What’s Included
For starters, you need to know what components are contributing to the cost of your monthly premium. Though you purchase a single policy, every policy is based on the cost for a number of different liabilities. These include:
- Bodily injury liability
- Property damage liability
- Medical payments
- Uninsured motorist protection
- Collision coverage
Some of these components are optional in some states. Look into insurance laws in your home state to understand what forms of liability and protection you need to pay.
2. Choose a Low-Premium Vehicle
If you’re willing to compromise on the type of car you drive in order to save on monthly insurance costs, then choosing a vehicle that has a lower premium. Cars with lower premiums are generally less expensive to repair and replace. In addition, larger vehicles have the lowest injury claims, whereas small vehicles have the highest injury claims. In addition, small two- and four-door cars have the highest collision costs. A sports car, for instance, will come with a hefty insurance price tag. In addition, though SUVs tend to fall into the larger vehicle segment, many have high insurance rates thanks to high rates of theft and four-wheel drive systems that are difficult to repair following a collision. The rates set between insurance companies vary, so make sure to look into costs before you purchase a car.
3. Do You Qualify For Discounts?
Since you likely can’t change your age, your marital status, or your hometown, the next step is seeing if you qualify for discounts on auto insurance. You might be surprised to learn that insurance companies offer discounts. Before you choose a company and a policy, see if they offer any of the following:
- Multi-policy discount. Insuring more than one car, or purchasing home insurance with the same i company can give you access to savings.
- Loyalty discount. If you’ve been with the same insurance company for years, you might be eligible to save up to five percent of your monthly premium.
- Good student discount. Being a young, new driver can cost you when it comes to insurance. But if you’re enrolled in high school or college, you may be eligible for a student discount. You will have to maintain a certain average, providing transcripts as proof of your academic history.
- Safety features discount. If you own a car with factory-installed safety features, such as airbags, you may be eligible for discounts.
- Good driver discount. Maintaining a good driving record is one of the smartest ways to get discounts on your monthly premium. A lot of car insurance companies are willing to reward drivers who have consistently maintained a clean record.
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