Car insurance is very important considering the many risks that a driver faces whenever he or she is on the road. When you are out on the highway, regardless of whether you are driving negligently, you can still end up in an accident. Car insurance can save your financial neck by replacing or repairing your damaged vehicle – but it comes at a cost. Car insurance can be costly.
Since car insurance is usually expensive, lets consider some ways to reduce the costs of car insurance. There are my five favorite ways to do reduce policy costs:
The first way is to use only the coverage that you need. Insurance policies vary widely in their coverage – everything from rental cars, to hotel accommodation, to windscreen cover may or may not be included. What is common though – is that these extras add to the premium. Reduce your costs by only buying the insurance coverage which is important to you.
The second way is to install safety equipment. This will not only benefit you in the sense that you will be safer in case any accident happens to you but also because you can avail of discounts that insurance companies give for the installation of items such as car alarms and immobilizers.
The third way is to choose an insurance company that offers more you a discount based on your good driving record, your employer, your membership of a driving organization. There is very often a deal to be had – so ask around for the best deal for you.
The fourth way is to acquire your different insurance policies from the same company. If you have many cars or vehicles, then it will be wise to have it covered with insurance from the same company in order to save some money. Combine your home and contents policies as well to make for larger savings.
The fifth way to reduce car insurance cost is to increase your deductibles in order to decrease the risk that the insurance company will assume. If you can afford a $1000 excess you may be surprised at how much lower your premiums will be.