There are many decisions a car owner can make that affect the cost of car insurance. These decisions run the gamut from the actual vehicle itself to the amount of coverage in the policy and the level of the deductibles in the policy. In each case, the control is in the hands of the prospective policyholder, always make sure you can compare these insurances by asking the appropriate questions. Here are some ways to keep the cost of car insurance as low as possible:
- Stay away from sports cars. The type of car you’re insuring has a big impact on the cost of the insurance policy premium. Insurance companies rely on statistics that indicate which types of vehicles are more likely – based on a statistical analysis – to be involved in accidents. Policy rates are higher on those vehicles. Sports cars, for example, result in higher insurance rates than four-door sedans do.
- Adjust the deductibles. The policyholder has total control over the deductibles in a car insurance policy. The deductible is the amount of money a policyholder agrees to pay out of pocket before the insurance company takes over the claim. The higher the deductible, the lower the cost of the insurance. However, the analysis is not that simple. A $1,500 deductible can mean a 20 percent to 25 percent savings over a $500 deductible. But what happens if the car owner must file two or three insurance claims in a year? If a car owner doesn’t have the money to pay the deductible, the potential savings in premium payments don’t really matter.
- Ask about discounts. Insurers offer a variety of discounts, and not all insurance companies automatically apply all discounts that are available. Some of the more common discounts go to drivers with good driving records or drivers who park their cars in a covered garage at night. Always make a habit to search it online before going into any decisions that can land you in trouble later on when you have to make the claim for any insurance cover. Discounts also are available to drivers who have other insurance policies with the insurer, as well as drivers who belong to certain organizations, such as the American Automobile Association, the Association for the Advancement of Retired Persons, and even the American Bar Association.
- Compare prices. Finally, the best way to keep the cost of car insurance as low as possible is to compare quotes offered by different insurance companies. Many companies offer auto insurance quotes online. As long as the same information is offered to each company, comparing the quotes should reveal which of the insurers is offering the best deal.
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