Every vehicle owner has to buy insurance to comply with the laws of his/her country/state. However, it doesn’t mean that insurers can charge you as much as they like just because you have to buy it. There are many companies that are offering coverage and this balances supply and demand. You can follow 5 simple steps laid out below and get yourself cheap car insurance premiums.
Step 1 – Deductibles
Each policy comes with deductibles when you include Collision and Comprehensive Coverage. These are normally set by the insurer but you can increase them voluntarily to reduce premium. It is important to see if you are saving enough by doing so. Otherwise, you would just be taking too much risk and not getting rewarded for it. Not every company offers the same savings for policyholders who agree to take more of the risk in case of having an accident or suffering an insured loss.
Step 2 – Security
It is important to make sure that your comes with all the latest security and safety features when you buy it. Manufacturer installed features are accepted by most companies while later installed alarms may not be accepted. These features are there to reduce insurance related losses because they either reduce accidents or theft related losses. If the insurer is less likely to suffer losses they are more likely to charge you less money to insure. You can take this as general insurance principal.
Step 3 – Annual Mileage
You don’t have to be hardly driving to claim low mileage discounts. Normally, companies look at your particulars and estimate possible miles you could drive. By giving them your actually estimated miles based on your past driving history you ensure that you are charged the accurate premium. This could be a great solution for those people who are suffering higher premiums because of deemed risk related to their age or other details. They could use their car as little as possible to claim the discounts. Also, they could buy a Pay As You Drive policy to make sure they only get charged based on accurate mileage and driving patterns.
Step 4 – Named Drivers
People are generally to generous to add drivers on their policies. If you really want to get cheap car insurance you should be doing the opposite and only insure the drivers who will drive the car for sure. Wherever possible you should make sure that the insurer don’t charge you for people who will never drive your car like your housemate who has his/her own car or the teenage daughter/son who is away at the college.
Step 5 – Shop Around
This is the simplest of the ways to save money and everybody can take advantage of it. It is simply based on finding the cheapest automobile insurers among tens of them. You can only achieve this by shopping around for the best quotes. Unless you ask them what is their price they are not going to tell you. So, you should be prepared to do the searching and turning stones. If you really don’t want to this yourself then find yourself a good independent insurance broker and ask him/her to get you the lowest premiums for the same cover.