How To Save Money On Car Insurance As Inflation Soars?
June 8, 2022
Inflation is soaring higher than ever and burdening common people in many ways. The insurance premium rates are increasing anywhere between 3% and 12%. Just about everything is getting expensive, while the pay continues to remain the same.
In such instances, it’s no surprise that people are looking for ways to reduce their expenses however they can. Since auto insurance is mandatory in most parts of the US, people with vehicles have no choice but to renew the existing policy or get a new one. That’s why many policyholders are looking for new car insurance that is as cheap as possible.
But how do you know which vehicle insurance is the cheapest? How can you find more ways to cut down the premium amount and save money? Let’s find out.
Here Are Some Easy Ways To Save Money On Car Insurance As Inflation Soars:
1. Get Lower Coverage for Older Vehicles
An older car doesn’t require comprehensive coverage or collision coverage. A basic car insurance policy for liability should do the job. The best way to determine how much to spend on insurance premiums is by evaluating the car.
If the car’s value is less than ten times the annual premium, you are wasting money on the policy. For example, if the car is valued at $20,000, there is no point in paying the same amount or more as the annual premium. Get rid of the add-ons and additional coverage and retain the minimum required policy as per the state’s regulations.
2. Take Public Transport
You don’t have to completely stop using your car. Using mass transport a couple of times a week or carpooling with colleagues a few times a month will also make a difference. How?
The insurance premium is calculated in different ways, isn’t it? One such method is where you can choose the insurance amount based on the miles you travel per year. The low mileage count changes from one state to another.
Check the local laws and find a way to reduce the miles on the car by using alternate means of transport. That way, you can cut down the premium amount by being eligible for low mileage discounts.
3. Choose Insurance Bundle
The simplest way to save money on auto insurance is through bundling. Many insurers offer insurance bundles to combine the policies for more than one type of insurance. Statistics show that bundle insurance can help save between 5% and 25%, depending on the type of car and property you own and the insurance company. You can get cheap auto insurance through bundling.
Check Also: How to Buy Car Insurance: A Quick Guide
4. Increase Deductible
The deductible is the money you ought to pay before claiming the insurance. This amount will not be returned by the insurer. People with a safe driving record or those who don’t drive often can increase the deductible amount and proportionally reduce the premium amount. You have to shell out a deductible only if are in an accident or collision.
5. Avoid Speeding Tickets
Driving within specific limits is helpful in many ways. You can avoid a speeding ticket (which can be hundreds of dollars) and maintain a clean driving record. Safe drivers can avail of the discounts from the insurer as they are considered less risky clients by the company.
If you have completed the defensive driving course recently (less than two years ago), you are eligible for another discount on the premium payment.
6. Maintain Credit Score
We know it can be hard to maintain the credit score during inflation. However, a good credit score will make you a less risky client. Insurance companies are more likely to give you discounts if you have a good credit score. It increases your chances of saving substantially on the premium amount.
7. Switch to a Cheaper Car
The premium rate is closely related to the cost of the car. A luxury car will need much more than cheap and affordable insurance. Switch to a second-hand car or a cheaper model and use that instead.
However, if you intend to use both cars, you’ll need insurance for both of them. Studies show that the average monthly premium for a Honda is almost half of what you have to pay for a Mercedes.
Conclusion
Talk to insurance agents and third-party independent insurance companies to compare the rates and policy limitations before finalizing your choice. Shopping around for more options will give you a better idea about the premium rates in the market. Finally, be a responsible driver.
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