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How to Dramatically Reduce Your Auto Insurance Costs

On Tuesday, December 15th, 2015

It’s easy to just let your auto insurance renew each year right?  Not much to think about, just keep it going, and not really worry about the cost.  However, it doesn’t take much time at all to significantly reduce your auto insurance costs.  And you don’t even need to reduce the service you receive either.

 Insurance

So even just an hour or two spent paying attention to this, could save you hundreds of dollars a year.  Yes, really.  How does $100 an hour sound to you?  Exactly!

So let’s go through some ways to reduce your insurance costs, starting right now:

You Must Shop Around

If you aren’t shopping around for the best price, you’re throwing away money.  And comparison websites make it just so easy.  You just need to enter your details, press Submit, and you’ll be presented with a ton of choices.

Perhaps you’re on the cheapest option right now.  But you won’t know for sure if you don’t comparison shop.  Of course, some cheaper insurance plans do have gotchas.  For example, sky high cancellation fees if you don’t see out your full year.  So be sure to notice more than just the price.

Higher Deductibles

The higher the deductible, the more you pay out of pocket if you have an accident.  But a higher deductable does have the effect of lowering your insurance rate of course, since there’s less risk to the issuer.

So if you’re confident you’re not going to have an accident, and are comfortable to spend a few hundred dollars if you do, then this option can save you a ton.

Consider Reducing Your Coverage

For example – perhaps you have an older car, and if you did have an accident it may not be worth repairing the vehicle.  Well, you can check the value of your vehicle.  And if you feel it isn’t worth saving after an accident, you may choose to reduce your coverage accordingly.  That way you’re not paying for insurance services that you don’t intend to use and benefit from.

How to Receive Discounts

Always be sure to look into discounts you can receive.  Ask your chosen insurance provider what sorts of discounts might be available to you.  For example, some driving courses you take can actually reduce how much you pay in insurance.  So it may be worth looking into training providers like easyasdta.com.au.

Also, if you plan to have more than one driver on the insurance, or if you can be added to someone else’s insurance, that can save a ton of money too.

How’s Your Credit?

Your credit score affects so many financial aspects of your life, and it’s true with insurance too.  Of course it doesn’t affect you to the same extent as when you’re applying for a loan or credit card.  But an insurance provider would want to see a history of on-time payments.

Actually, if you don’t yet have a credit history due to your age, it’s well worth getting yourself a credit card and using it for purchases.  And then making sure to pay it off in full each month.

That way you don’t accumulate any interest payments.  But a history of on-time repayments can certainly help increase your credit score.  And it gives you more options when shopping around for insurance.

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