Car accidents are ugly, no matter how minor or major the accident is. From a common fender bender to a severe accident that damages your car, not only is there a grave risk of people losing their lives in a car accident, there is a risk of losing all your savings as well. If you are not insured against car accidents, you might end up paying for the damages and medical treatments from your pockets.
This is why not only is it important to get a car insurance policy, but also mandatory. The US federal law and state laws require you to have liability insurance coverage to legally drive a car. But here’s the problem; when cars are getting affordable, gas prices and the cost of insuring the cars are getting sky-high. More cars mean more chances of getting in an accident.
While you can’t do much about the gas prices (other than getting an electric car), there are ways you can reduce your auto insurance expenditure by making the right purchase. Here are 7 great tips to get affordable car insurance plans and potentially save hundreds of dollars.
Get Auto Insurance Yourself
Word of mouth is a strong way of selling things, but it might not always be the best choice for you. There are a dozen ways dealerships and other companies will try to sell your car insurance policies. But if you want to get the best car insurance companies with the best coverage and premium rates, you need to get the car insurance policy yourself.
Use the power of the internet, compare multiple car insurance companies and select the one that fits your needs. Remember to get a minimum coverage limit that’s more than what the state mandates. Select the insurance company that’s right for you and what you want to get, not what’s being forced upon you.
Tip: Choose your auto insurance company yourself. Compare prices and policies and get the most affordable one. This leads to you getting the most effective low-cost insurance policy possibilities.
Skip an Insurance Agent
Having an insurance agent is very convenient and many people would prefer having an agent and not doing things all by themselves. There’s no denying the benefits of having an insurance agent, but it also increases your auto insurance expenditure. The insurance agents charge you for the services, and these commissions are not cheap.
So if you want to save money and get affordable auto insurance, you need to avoid getting an insurance agent. Perhaps 10 years ago insurance agents would have been a necessity, but today you could call them a luxury. Everything the agent does can be done online, from payment to claim settlement and knowing your insurance status.
Tip: you can save a lot of money by not having an insurance agent. Insurance companies have websites and apps that are powerful enough to eliminate the need for an insurance agent.
Keep Deductibles High
An affordable auto insurance policy should also have low premium rates. The most effective way of getting that is by increasing your deductibles. A deductible is the amount of money you must pay before the insurance company pays the rest. So if you get in an accident and the total cost of repairs comes out to be $5,000, and your deductible is $1,000, you must pay this amount first and then the insurance company will pay $4,000.
Tip: Having a high deductible will make you spend more in an accident, but it keeps the cost of premiums low. So drive safely, avoid getting in an accident and you won’t have to pay the high deductible amount while you save money on premiums.
Skip Some Coverage
You don’t have to get all the different car insurance coverage a company offers. Purchase the policies that you need and skip the rest. For example, getting liability insurance coverage is mandatory in 48 states and this policy is the most important one. Never skip getting a liability insurance policy.
12 states in the US are called “no-fault” states and it is mandatory to get a personal injury protection policy. But even if you don’t live in the no-fault states, getting personal injury protection is always recommended.
Coming to collision and comprehensive insurance policies, you can skip these two if you don’t need them. If your car is over 10 years old, then spending hundreds of dollars on comprehensive and collision coverage is not worth it.
Tip: Skip the policies you think are redundant and it will help you save a lot of money on auto insurance.
Get a Safe Car, or Make it!
Insurance companies will charge you less if your car is safe and secure. The higher the risk of you getting in a car accident or your car getting damaged, the higher will be the cost of auto insurance. There are ways you can reduce the cost of insurance this way.
Tip: Get a car that comes with a higher NAACP rating, and with safety technologies like ABS, EBD, and anti-theft lock. Make your car secure by installing safety features and your insurance rates will go down.
Look for Discounts
If you won’t ask, you won’t get it. Many great discounts are valid year-round. Feel free to ask the insurance company about the discounts and the eligibility. For example, there’s a Veterans discount, good student discount, Seniors discount, and much more.
Tip: Ask for any available discounts and see if you are eligible for them. Discounts can save you as high as 25% on insurance rates.
Avoid Minor Insurance Claims
Making an insurance claim will increase your auto insurance rates. So it becomes very important that you think before making an insurance claim. Let’s say that you get in an accident, and after paying the deductible, the insurance company will pay around $500 – $800, is it worth the increased insurance rates?
Tip: You are better off paying the cost of repair from your pockets than making an insurance claim if the amount is not too high.