Car insurance is a necessary evil, but it’s also expensive. With the cost of car insurance is rising, it’s harder than ever to save on your coverage. Before you can start looking for cheaper car insurance, it’s important to understand how your premiums are calculated and that companies like FreewayInsurance.com exist who offer cheap car insurance
How Insurance Costs Are Calculated
There are a few aspects that insurance companies consider when setting premium rates. The following are factors that have a significant impact on car insurance rates:
- Driving history. Insurance corporations will take your driving record into account before deciding the cost of your premiums. If you have a decent driving record, you’ll qualify for a lower rate.
- Your location also plays a role in your insurance rates. If you live in a high-crime city with a high amount of traffic accidents, you’ll be charged higher premiums.
- Your age is another significant factor that insurance companies consider. The younger you are, the more you’ll pay for car insurance.
- Credit score – According to studies, drivers with poor credit tend to file more claims than drivers with good credit. As a result, drivers with a low credit score tend to have higher car insurance premiums.
- Gender – A young driver’s gender may affect his or her car insurance rates. Studies show that male teen drivers tend to pay higher insurance premiums because they’re seen to be more likely to take risks.
How To Save on Car Insurance
Now that you understand how insurance rates are calculated, here are six ways to save on your coverage.
1. Shop Around
One of the finest ways to save on car insurance is to make sure you’re getting the best premium rates. But before you contact your current provider, you want to do some preliminary research online. There are several websites that offer free insurance quotes. Use these quotes to compare rates quickly and easily choose the cheapest car insurance.
2. Bundle Your Home and Car Insurance
Car insurance is all about risk management. Bundling your home and car insurance coverage is a great way to lower your premiums. By packaging your car and homeowners insurance together, you can often get a discount of as much as 25%.
One downside to bundling insurance policies is that it limits your options for price shopping if you ever need to file a claim. But if you want to save money without switching to a new insurance provider, bundling your home and car insurance is a great way to cut down on your costs.
3. Increase Your Deductible
Your deductible also comes into play when you’re looking to lower your car insurance premiums. The higher your deductible, the lower your premiums will be. A higher deductible might mean you’re paying more out of pocket when you need to make a claim. However, it can save you hundreds of $(dollars) on your premiums each year.
So, if you’re a low-risk driver, consider raising your deductible to save money on your monthly car insurance premiums.
4. Take Advantage of Discounts
Insurance providers often offer a variety of discounts for drivers who meet certain criteria. If you’re a safe driver, a student, or a senior citizen, call your insurer to see if you qualify for additional discounts.
Sometimes, auto insurance companies also offer discounts for safe drivers. If you didn’t get any accidents or tickets in the past few years, you might qualify for a reduced driver discount.
5. Know Your State’s Minimum Coverage Requirements
Every state has its particular minimum car insurance requirements, so it’s important to know what they are before you buy coverage.
For instance, in Florida, drivers must have the following coverage:
- A minimum of $10,000 personal injury protection (PIP)
- A minimum of $10,000 for property damage liability coverage
In Illinois, on the other hand, drivers must have:
- Bodily injury liability cover ($25,000 per person or $50,000 per accident),
- Property damage liability ($20,000 per accident),
- Uninsured motorist cover ($25,000 per person or $50,000 per accident).
So, if you are living in a state with a lower minimum car insurance requirement, you may be able to save cash or money on your coverage by electing not to buy more than the state requires.
6. Stick to a Regular Maintenance Schedule
If you are looking for ways to decrease your car insurance costs, consider taking care of some basic maintenance issues. Sticking to a regular care schedule is not only good for your car, but it can also aid you save money on your car insurance. So, be sure to take your car in for regular tune-ups and maintenance checks.
Save Money on Car Insurance in the New Year
When it comes to saving money on car insurance, the key is finding ways to lower your risk of filing an insurance claim. By following these simple guidelines, you can save money on your car insurance premiums in the New Year.
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