Ways to Save on Car Insurance Premiums
By Laura Reeves
- Many people don’t realize that not only are insurance companies concerned with the insured’s driving history, they are also concerned with the type of car you drive. There are cumulative reports the insurance companies utilize which keep track of how many accidents for each model type of car. As such, if the insured is teetering between what model car to purchase, it might behoove him/her to contact the insurance company to see which premium would be cheaper.
- The more security features, the more discounts will be applied to the policy.
- If the insured is planning on adding a child to the policy, one way of decreasing the premium would be to have the child attend a driving school. Additionally, many insurance companies offer a discount for the submission of good grades in high school.
- When shopping around, be sure to obtain a hypothetical from several insurance companies. This form of due diligence could offer a significant savings. Note: Do not reduce coverage to save on the initial premiums as it could be a costly mistake should you get into an accident and don’t have enough coverage.
- Many companies offer a savings if the insured bundles his coverage by consolidating his home, auto and umbrella liability insurance.
- Look into any discounts on paying in full and via auto debit.
- Inquire on how the insurance company charges based on mileage. You might be entitled to a discount, if you drive a minimal number of miles per year.