Car insurance is crucial because it protects you financially when behind the wheel, whether you have basic liability insurance or full auto coverage. Some factors can determine the cost of your car insurance, and you should be aware of this. Knowledge is power, and if you know where to start or look, you can lower your car insurance quote. Insurance providers consider certain factors when determining your premiums:
Age is one of the factors in determining car insurance. While middle-aged drivers have low rates, teens and newer drivers have higher premiums, especially in an individual policy. Hence, adding a young driver to a family insurance policy can help you save money.
Next factor is your driving record. Clean driving records pay low premiums, unlike drivers with DUI or accident records. The type of car you drive can also determine your insurance cost. Unlike sedans, sports cars are at higher risks, and the owners usually pay more.
When it comes to your record, the credit score is vital to determine your discipline. In most states, the credit score is used to determine whether a car owner can pay premiums and the possibility of filing a claim. The higher the credit score, the better the insurance rates.
Lastly, your location will also play a vital role. Do you know that the place where you live or drive your car can determine the premiums? If you are in an area with dangerous intersections or car owners have numerous accidents, you will pay more premiums.
While these factors determine your car insurance quote, there are ways you can lower your MoneySmart car insurance. Ensure to consider your personal factors to determine your estimated car insurance. Here are guaranteed ways you can lower your car insurance cost:
I. Boost your credit score
Start by checking your credit score report to ensure it is correct because the mistakes can lower your credit score. Alternatively, you should start making on-time payments to creditors, avoid opening new accounts and pay down payments to use less than 20% of your available credit. Boosting your credit score improves your MoneySmart car insurance cost.
II. Improve your driving record
If you have a bad driving record, for example, DUIs, accidents, or speeding tickets, there is nothing you can do about it. However, you can improve your driving record by ensuring you do not receive additional moving violations, DUIs, and speeding tickets.
III. Change your coverage
Sometimes it is prudent to evaluate the type of car insurance coverage you already have because changing it can lower costs. For example, when you purchase a new car, the car lender requires you to purchase full coverage. However, if the car is a few years old and paid off, full coverage may not be necessary. This might lower the car insurance cost eventually.
IV. Raise your deductible
As a rule of thumb, if you can afford to pay a higher deductible when filing a claim, you will get a lower car insurance cost. Always try to raise your deductible if possible.
V. Bundle the car owner and homeowner insurance
Most insurance companies love it when you go to them for all your insurance needs. Therefore, when you bundle your car insurance and homeowners’ insurance and insuring more than one vehicle on the same insurance company can help you lower the car insurance rates.
VI. Change car
The type of car you drive can determine the car insurance cost. Car insurance companies determine the car insurance rates by checking the cost of repairing it in case of an accident, the possibility of the car being stolen, and the car’s safety record. If you have a car with high car insurance premiums, you should consider swapping it with the one with lower insurance premiums.
VII. Taking a defensive driving course
A defensive course can help you improve your driving skills, thus improving your driving records. Ergo, if you complete a defensive driving record, most car insurance companies can offer you a discount.
VIII. Seek available discounts
When looking for MoneySmart car insurance, consider visiting their website to check out available discounts and choose or change your car insurance plan. Always be vigilant and look for available discounts that can help you lower your car insurance.
Although the price of auto insurance will probably increase in the future, there are numerous ways to reduce the insurance cost. Always do thorough research, get quotes, and get advice from colleagues, friends, and professionals to help lower your car insurance cost.