The cost of car insurance has increased in the past six months with further hikes expected throughout 2015, making it more difficult to find the right cover at the right price. Not only is auto insurance required by law but it’s also a good thing to have should you get into an accident or your auto is stolen. Unfortunately rates vary greatly between auto insurance companies and the cost of the premiums can equal or even exceed the payments on your auto.
Car insurance covers you if your car is stolen or involved in a road accident. It also protects other road users if you cause damage to their vehicle and other property. The cost of insurance – your premium – is based on how much of a risk insurers perceive you to be.
Search around, don’t automatically assume the largest companies will have the best rates. In fact, they spend a significant amount of money on advertising, which is paid for by you, their customer. Don’t be afraid to visit sites of lesser known insurance companies, you’ll be pleasantly surprised at their rates.
Add a responsible second driver. It makes sense to think adding more motorists to a policy would make it cost more. Yet especially for younger drivers, it can actually lower your costs. This is because the risks may be averaged. So adding a responsible older driver, who could legitimately use the car, can cut costs. Those with a good driving record are likely to help make bigger savings, but anyone who’s a lower risk can help.
Take a defensive driving course. It’s a good idea to take one of these every few years anyway as it will reduce your insurance rates and remove points from your license. A win – win situation for you. Make sure the insurance company knows you have the completion certificate, that way you’ll get cheaper online auto insurance quotes.
Raise Your Deductible. Slash your auto premium drastically by raising your deductible – the amount you pay out of pocket when you make a claim. Decide how much you can afford to spend out of pocket; then, adjust your deductible accordingly.
Don’t automatically assume that adding a second vehicle to your existing policy will give you lower rates. Always get an online insurance quote listing both vehicles from another auto insurance company.
Ask for a Multiple Car Discount. Insuring another car usually does not cost as much as you may think. If you have two cars, it is very wise to check with your insurance agent, or while obtaining your online insurance quote. Also, if you are planning to sell a second car, the cheap car insurance trick would be to keep that car on just liability to get your multiple car discount.