Ways To Reduce Your Car Insurance Costs

by Administrator 19. June 2014 12:29

If you own a car, one thing you cannot avoid is car insurance. It makes sense to take out a car insurance policy to ensure that you are financially covered in case of damage or accidents. Since there are numerous legal factors concerning car ownership and accidents, and due to the fact that car prices have steadily risen over the past few years, car insurance can be expensive. Trends indicate that car insurance costs are not going down any time soon. Fortunately, there are a number of ways through which you can significantly reduce your car insurance costs so as to ensure that your car insurance payments become more pocket friendly. Here are a few particularly effective tips.

Using One Insurance Company

One great way to reduce your car insurance costs is to use one particular insurance company for all your insurance needs. There are areas where you need insurance, including home insurance, renters insurance, insurance for valuables and car insurance. If you take out insurance policies for all of these separate areas from one particular company, you might be eligible for a multi-line discount which significantly reduces your car insurance costs.

Having a Larger Deductible

The deductible is a preset amount that you have to pay out of your own pocket when you make a car insurance claim. Setting a higher deductible is a great way to reduce your car insurance costs. Consider your financial situation and choose the highest deductible amount which you can pay comfortably and your car insurance premiums will become significantly less.

Driving Carefully

Almost all car insurance companies provide better premiums for those car owners that drive carefully. If you steer clear of traffic violations and accidents, you can expect your insurance company to give you a large discount on your premiums. Furthermore, some companies even increase the amount of the discount given if you can sustain your safe driving performance for many years. Many companies will also give you large discounts on your premium if you take a defensive driving or accident prevention course.

Driving Less

The general rule with car insurance is that, the more you drive your car the more the chance that you can face an accident, and therefore the more you pay in terms of insurance premiums. If you are an infrequent driver or use carpool and mass-transit regularly, then it means that you will be driving your car less. This makes you eligible for lower car insurance costs.

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