One of the most surprising things about car insurance is how much control customers have over the pricing. Some people may feel that more than a little effort and knowledge is required to successfully navigate the world of finding less expensive insurance, but if you put in the effort, you’ll be able to find more affordable options. Far too often, people feel stuck paying their current insurance and do not take the time to research other options.
Since car insurance is a legal necessity and since people would prefer to pay the minimum amount necessary to get what they want, a guide to improving the price for your next car insurance purchase is likely to be rather popular. That said, there is little magic in the world of insurance, so there won’t be many miracles, but there can definitely be a lower price for a better overall product.
Simply put, if you increase your deductible, you will reduce your premium. The reason for this dynamic is because a higher deductible reduces the chances your insurer will be required to pay a claim. Insurance is designed to handle the kind of disasters that exceed your day-to-day budgets, so there is no reason to carry a policy with a minimal deductible.
If you are financing your car, you may have little choice when it comes to collision insurance, since your lienholder will insist that their property be restored in the event of an accident. However, if you own the car and it is old enough, you should definitely consider either dropping collision insurance or dramatically reducing the coverage limits. The worst of all possible worlds is one where you end up paying more in collision premiums than the car is worth in the first place.
The third and possibly most effective option is to apply for every discount you possibly can. Good driver discounts and driving class discounts are two of the best, as they have the highest potential for reducing your premium. If you don’t already have these advantages, you should find out how to get them or find an insurer that offers discounts for a good driving record. There are often club membership discounts and academic achievement discounts as well. Take advantage of them all, as over time they will save you a fortune in unnecessarily high premiums.
It is sometimes a good idea to consult a financial planner when it comes to any kind of insurance, as they will sometimes be aware of industry standards the average person isn’t. Take your time and make the best choice. It saves a lot of money down the road.