As you know in these days of financial crisis, american car insurance costs are going up and up, but it’s something we all need and must have in the eyes of the law. However, don’t be fooled into thinking you just have to accept the quote your insurer gives you, as there are plenty of ways to significantly reduce your car insurance costs.
Firstly, you should shop around as much as possible – too many people don’t even do this step which is unforgiveable with the internet at our disposal these days. The wonderful world of the internet allows you to easily compare insurance costs of various insurers, so get looking today. Plus, you’ll usually get a discount of 10% or more just for buying your policy online.
Secondly, look at what policy suits your particular situation. For example, if you go for third party, fire & theft, you can significantly reduce your monthly premiums compared to a comprehensive policy.
Thirdly, there’s the no claims discounts: Nearly all policies feature a discount that increases for every year you don’t make a claim. The more years you have not made a claim the better. Also look at insurers offering a ‘no claims bonus for life’ feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line.
Look at what excess you have on your current policy, this is the amount you pay before the insurer picks up the claim. You will get a cheaper car insurance premium of you choose to pay a higher excess.
How secure is your vehicle is the next question to ask yourself. By fitting a proper alarm and immobiliser it can also reduce your premium. Parking you car off-road, for example on a driveway or in a garage, will also mean a cheaper policy.
By paying your car insurance annually, you will save compared to paying monthly premiums. Pay annually if you can afford it to avoid this, or look for one of the companies who don’t charge extra for monthly payment.
Next, you can save more if you just use your car for social, domestic and pleasure only compared to if you used it for commuting. Even if you are a commuter or use your car a lot, make sure you accurately calculate your mileage as you may be overestimating causing you to have higher than necessary premiums.
These are just some of the methods to save on your auto insurance policy, so start searching and saving today.