The price for auto insurance seems to be on the rise, along with every other bill that arrives in the mailbox. While some bills, like the mortgage or rent, are as solid as concrete and won’t decrease no matter what you do, the other bills may be a little more flexible. You can cut the amount of time you water your grass to save on the water bill, and perhaps set the air conditioner to a higher temperature to lower your electric bill. What about the auto insurance bill? Can that decrease at all? Of course it can be lowered, but only through smart choices on the policyholder’s part.
Decreasing the auto insurance bill can be done with thoughtful planning over time. The process does not always guarantee instant savings or even a large amount of savings, but it does add up in favor of the policyholder. Not all drivers have the opportunity to take advantage of all of these suggestions, but if you are looking to decrease your auto insurance bill, do as much as you can to better your situation until you are satisfied. Here are some ways every driver can decrease their auto insurance bill:
Avoid accidents or getting traffic tickets
For some drivers, this suggestion is more easily said than done. Do you feel as though the police are out to get you? Are they always catching you speeding or breaking another traffic law? Odds are, it’s you who is attracting them because of your lack in cautious driving. If you are a driver who doesn’t hesitate to break traffic laws, especially on a regular basis, you are going to be caught more often than not. Drivers who receive a large amount of traffic tickets are going to see an increase in their premium rates, and drivers who do not receive any traffic tickets will not see an increase in the premium rates. They may even see a drop in their rates because they haven’t received any tickets.
Also, drivers who receive tickets are considered to be at a higher risk of being in an accident compared to drivers who do not receive tickets. When a driver is deemed as a high level of risk, the auto insurance company charges them a higher premium cost. Statistically, high risk drivers are involved in accidents and file more claims than a driver who is categorized as a low risk. To make money, auto insurance companies must have more money coming in from premiums and have little money going out as paid claims, hence the reason they charge people more who are probably going to be spending the insurer’s money more often.
When a driver is involved in an accident, their auto insurance rate will increase. Drivers who are found to not be involved in accidents will find their auto insurance stays the same or actually decreases over time. Can you guess why?
Some auto insurance companies offer an accident forgiveness program to their customers. This is usually based on certain prerequisites being met before it is extended to a customer. The prerequisites usually vary from company to company, but most require a given amount of time without an accident, somewhere around 3 to 5 years of a driver being accident free. Once that time period has been reached, if the driver gets in an accident and files a claim, the auto insurance company either will not raise their rates or will only raise them slightly. After that accident, the time period must start again, if it’s even offered at all.
Get a cheaper car
Having to carry comprehensive and collision coverage for your vehicle adds to the expense of auto insurance. These coverage options are on your policy either because it is required by the loan holder or because you wouldn’t be able to replace your car tomorrow if it was totaled or stolen. Owning an older car that wouldn’t need comprehensive or collision insurance will save you money on your auto insurance bill by eliminating that coverage and decreasing your final premium.
Get a car with safety features
If you don’t like the idea of driving an older car to bypass comprehensive and collision costs, find a car that is loaded with safety features. A car that is equipped with a car alarm, airbags, low-jack, or the serial number etched into the glass boosts the safety of the vehicle or its ability to be retrieved. Auto insurance companies reward policyholders for making this effort with their vehicle.
Drive less
Vehicles that are driven more often are found to cost more to insure. If one car is driven more miles than another car, the first car will be found on the road more, which increases the chance it will be involved in an accident. Policyholders and other drivers on the policy can opt to take the bus or carpool more frequently to lower the miles they drive their vehicle. Auto insurance companies ask how many miles the car is driven per year and use this information to help calculate the final premium cost.
Use your garage
Another way an auto insurance company will keep your insurance low is by storing your vehicle in a locked facility when it is not in use. A car that is kept locked in a garage over night is far less likely to be stolen, vandalized, or damaged than a car that is kept on the street during night hours. Insurance companies look to reward people who protect their vehicle as best they can.
Take a driving class
It’s not always known that drivers can take classes, such as defensive driving, to get a discount on their auto insurance bill, but most auto insurance companies offer courses to help customers learn how to be better drivers. Learning how to maneuver around objects and pay closer attention to surroundings from these courses will show insurers you are safer and therefore less of a risk for an accident.
Auto insurance is one bill that can be lowered through efforts made by members of the policy. Showing responsibility by doing these above mentioned things will aid in decreasing your bill.
