10 Tips To Reduce Your Auto Insurance Premium

In recent years, car insurance costs have increased immensely, and vehicle owners are starting to feel the pinch. Traditionally, the cost of your auto insurance premium was determined by a couple of key elements, such as the value of your vehicle, how often you drive it, and your driving history and habits. But today, insurance companies look at additional factors when evaluating your auto insurance premium. The good news is that those factors can help you reduce your car insurance rate. 

In this post, we’ll share some tips on which areas to focus on when trying to reduce your car insurance cost: 

• Increase Your Deductible 

Most auto insurance policies include a deductible—an amount you pay out of pocket before your insurance coverage begins in the event of an incident. Generally, your auto insurance payments decrease if you pay a higher deductible. 

When selecting your deductible amount, you’ll notice that most insurance providers offer set deductible amounts, such as $500 or $1000. If you choose to increase the deductible amount, be sure you have that specified amount of money kept away in savings should you be required to pay the deductible yourself in the event of an accident. 

• Check For Discounts You Qualify For

Your insurance company may offer discounts that you are unaware of. For example, Nation West has a range of discounts you can take advantage of. Some common discounts to decrease your auto insurance include: 

• Purchasing your auto insurance policy online
• Enrolling in automatic payments
• Bundling your multiple policies, for example, your home and car insurance, in one
• Having good driving habits and being an accident-free driver 
• Completing a safe driving or defensive driving program 

• Practice Defensive Driving 

If you’re a young driver with only a few years of driving under your belt, you can benefit and potentially decrease that high car insurance premium by taking a driver’s training course. If you choose this path, ensure that your defensive driving course is reputable and recognized by your insurance provider. Most insurance companies will re-evaluate your car insurance premium if you have successfully completed and passed a defensive driving course.

• Opt Out Of Coverage You Don’t Need 

Sometimes, your car insurance policy may cover things you don’t need or that you already have from other service providers. For example, if you have roadside assistance from another service provider, you can remove it from your auto insurance coverage. Or if you have a rental car reimbursement included that you never use, remove that. Removing these coverage items can quickly reduce your car insurance premium and cut down costs with minimal effort. 

• Shop Around For Cheaper Coverage

Even though you may have an existing car insurance policy with one insurance company, there’s no harm in shopping around to see what other companies will offer you. Car insurance is based on several individual rating factors, and it’s always a good idea to get quotes from various companies to see which one is giving you a less expensive rate for your preferred coverage. Before selecting an insurance company, double-check that the policy and coverage match your expectations. 

• Update Your Policy

If your car insurance policy has remained the same for a few years, it may be time to review it to see if your coverage requirements have changed. For example, if you’re over 25 years old, you’re no longer considered a young driver, which may reduce your premium. Or if you changed jobs from in-office to fully remote and no longer drive to work, your mileage is much lower, resulting in less risk of a collision. All these factors may help you save money on your premium. 

• Improve Your Credit Score

Insurance companies will sometimes review your credit score as part of the risk assessment process. Sometimes, drivers with higher credit scores receive a lower insurance premium rate because their credit score is associated with making sound and responsible decisions. A good credit score shows insurance companies that you pay back debt well, you pay your bills on time each month, and your credit utilization rate is good. 

• Purchase A Smaller Vehicle

Your vehicle type, make, model, age, and price are all crucial factors influencing how your premium is calculated. If you want to save money on your car insurance, avoid purchasing a sports car, a large vehicle, or anything too luxurious. These factors increase the chance of an accident or theft of the car. Rather, look at something smaller, more economical, and less eye-catching. 

• Use Public Transportation 

Another way to decrease your insurance rate is by reducing your annual mileage. The higher your mileage, the higher your insurance rate, as it increases the chance of you having an accident. Reducing your kilometres can decrease your insurance rate as your driving limit (and the chance of an incident) is lowered. One easy way to do this is by taking public transportation to work and only using your vehicle on weekends. 

• Speak To Your Broker

In addition to the above factors, additional cost savings may be available in other areas. To understand this best, ask your broker about any special discounts they offer clients. Based on your driver profile, you never know where you could save! 

As we move ahead to the future, the likelihood of car insurance rising is high. So, get ahead of the game and speak to a professional broker about how you can save on your auto insurance premium while still keeping all your necessary coverage needs intact.