More Tips to Lower Your Car Insurance

Today, owning and maintaining your car is one of the most expensive items in your home budget. The average car owner doesn’t realize all the hidden costs of owning a car. If you add up rising gas prices, service, maintenance, and insurance premiums you will see lots of money leaving your wallet every month.

One of those expenses, car insurance, is one expense that if planned and thought out can prove economical and possibly save you lots of money. Car insurance is an intimidating and confusing part of owning a car so many car owners shy away from the details and miss ways to save money.

We all know to shop around for a good car insurance deal but many of us have no idea how to do this. First get the names of four insurance companies you would be happy with using. Go to their websites and get some company info and submit your information and receive a quote. Then find a website that compares many different insurance companies. Enter your information and take your insurance quotes and compare them to four quotes you already have. You may see on the comparison site that the quotes may be a little lower. On these comparison sites there is more competition and insurance companies know it. They lower their price to get your business. Make sure you enter all information correctly and completely. Premiums can vary widely depending on make, model , and year of your car.

If possible get your quotes from the insurance companies you already deal with for your home, health, and business insurance. You can earn multi-line discounts by using the same insurance company with all your insurance needs. This discount has been known to save consumers at least 10% more in premium savings.

Another good way to save car insurance premiums is to raise your deductible. You can put aside the amount of the deductible in a savings account and have it ready in case of an automobile accident. The money you save with a higher deductible can fund this account. This tip works especially well for people who are safe drivers and those that don’t drive their car to often.

If you are a safe driver you always get a lower premium make it a point to always obey all traffic laws and don’t drive faster than the speed limit. A good driver can receive premium discounts up to 5%. A continually good driver may receive even better rates as the years pass. A long-term good driver is an asset to car insurance companies. It’s in the interest of the insurance company to keep you as a customer and they reward you with a cheaper premium.

Did you know that having a good credit score lowers you premiums? If you pay your bills on time and are not in too much debt you probably have a good credit score. Car insurance companies always check your credit score when determining your premium. They believe if you have a good credit score you will also be less of a risk. This may be an unfair penalty if you have poor credit but use it to your advantage by maintaining the best credit score possible.

Many insurance policies have extras you may be able to eliminate. You may automatically be assigned road-side assistance or car rental coverage. Be sure to go over your policy line by line eliminating all unnecessary coverage, it will save you money.

Tags: Business, Business and Economy, Credit history, Financial services, Insurance, Motor, South Africa, Vehicle insurance

Category: Car Insurance