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Right along with fuel and maintenance, auto insurance is one of the biggest costs of owning a car. Therefore, anything you can do to bring that cost down will significantly reduce your overall cost of car ownership. While you won’t ever arrive at zero cost auto insurance, there are a few things you can do to help lower those costs.
One of the biggest factors that insurance agencies like Northeast Insurance Agency consider when determining your premium is your driving history. Of course, some wrecks are unavoidable, but you need to do everything you can to keep yourself out of trouble. This means observing posted speed limits, not driving while fatigued or under the influence of alcohol or medication, giving yourself plenty of follow room, and all those other basic safety tips you learn early on in your driving career but don’t necessarily follow as you become more comfortable.
An easy and reliable way to reduce your car insurance costs is to lower your premium by increasing your deductibles. A higher deductible means there is a higher threshold before your insurance company begins paying to repair damage to your vehicle. Especially if you have an older vehicle that would likely be totaled in a crash anyway, you can save some major money by increasing your deductibles or eliminating collision and comprehensive coverage altogether.
While the costs associated with moving would certainly outweigh any potential car insurance savings, a move, if completed for other reasons, can save you money on your insurance, as well. One important factor that insurance agencies consider is the vehicle’s “garaged address,” meaning where the vehicle is kept most of the time. If you move to a neighborhood with lower vehicle theft and break-in rates, you could be in for some sweet savings.
While replacing an old vehicle with a newer model can cause your rates to increase due to the higher cost of vehicle replacement, choosing the right new vehicle can help control those costs. Insurance agencies use vehicle safety as one component of determining your premiums. After all, passengers riding in a vehicle that provides better occupant protection stand a lesser chance of needing to go to the hospital in the event of an accident, thus lowering the risk for the insurance company.
The more often and further you drive, the more likely you are to end up in a wreck, simply due to the law of averages. It follows, then, that the less you drive, the lower your car insurance rates will be. While you likely can’t eliminate your daily commute or weekly trip to the grocery store, you can work to combine errands into a single trip to limit your time on the road and your miles driven.
Of course, though there’s plenty of things you can do to lower your costs with one company, sometimes the best way to lower your costs is to change companies altogether. By shopping different companies for the best rates, you can be sure you’re getting the best value for your money. Just be sure the company offers good customer service, so you don’t end up high and dry in the event you actually need to use your insurance.