Don’t settle for an outrageous auto insurance policy. Click here to discover a complete guide on how to get affordable auto insurance.
We are in a tough financial time, and this includes owning and driving a vehicle. Insurance premiums are rising, and owning a car is becoming more expensive.
If you live in a major city where you can take public transportation, Lyft, or Uber, then you can save by not having a car.
But if you live in an area without good transportation, you could be in a pickle. Owning a car is expensive enough, but now prices are rising on auto insurance and it doesn’t seem to be slowing down anytime soon.
Fortunately, there are ways to insure a car without having your premiums rise year after year. Here’s the best way to get affordable PA auto insurance.
There’s an age-old great tip to get affordable auto insurance: shop around. There are several different types of car insurance that differ in price, and each type of insurance is adjusted differently for every driver.
We all know that finding a great price is important, but it shouldn’t be the only determining factor. Consumers should be more concerned with finding – value – which incorporates both price and coverage. Look around to see which carriers offer the most discounts for your particular vehicle.
Have an expected budget for auto insurance. Check with multiple insurance carriers and receive quotes, online and offline.
Lower miles means lower premiums
If you don’t drive a lot, your premium should reflect your limited usage. Some drivers log less annual miles because of carpooling, telecommuting or access to pulic transportation and should be paying accordingly. Some insurance companies will offer a reduction in the rating if the driver’s annual miles are less than 7,000 miles.
Install a Black Box
Drivers with bad driving history and youthful drivers can sometimes be the most expensive to insure. While this is a problem, you can get affordable auto insurance by installing a black box (or telematics UBI).
This device records your driving habits and sends them to the insurance provider. When the insurance company sees you’re a safe driver, they could offer an additional discount on the basis of your monitored driving.
How does the black box work? It uses a process called telematics. It tracks the speed you’re driving and a number of times you brake and accelerate. When it was initially offered, you would have to plug a device into your vehicle and let it track all of your driving habits. Nowadays, some carriers even offer this service as a mobile phone app.
Research What Insurance Works Best with Your Car
You may be surprised how much your insurance premium relies on the car you drive.
When you sign up for insurance, the insurance carrier will calculate rates based on the make and model of your car. Other information they take into consideration is the year of the car and its safety rating.
In general, the cost of the insurance is driven by the value of the vehicle. So newer vehicles that cost more to buy usually cost more to insure.
Add a Second Driver
One driver adds the risk of having insurance and all costs will fall on you. Therefore, adding a second driver decreases the premiums you have to pay.
When adding a second driver, it’s best to add them to the lease or contract on your car. If they’re not on the lease, make sure they’re a reputable driver and someone you trust. Examples include a spouse, a parent, or a sibling.
Pick Coverage That’s Right for You
There are certain aspects of coverage that’s necessary, but not all aspects of the coverage plan are right for you.
For example, you shouldn’t spend a fortune on collision coverage when you drive an older car. If your vehicle is older than 10 years, it might be a good idea to examine the cost of the collision coverage versus the actual cash value of the vehicle. In some instances, it might make sense to remove collision in order to lower the cost of the insurance.
It’s important to be educated about all of the different options that are available.
Does it pay to take a high deductible
One great way to lower the cost of your insurance premiums is increasing your deductible. This is the amount you are responsible to pay to fix your vehicle in the event of a claim. The savings can be substantial in some instances when self-insuring to a higher limit. And keep in mind that not-at-fault accidents
Achieve a Better Credit Score
What’s the #1 thing you can do to get a better insurance price? Improve your credit.
A good credit score is an indicator of your financial responsibility; and the insurance company will adjust their rates accordingly. So the better the credit score the better your price.
Not all insurance carriers require a credit score. If you don’t have a good credit score, find a policy that doesn’t check your score. In some states the carriers have the option to adjust rates according to a changing credit score at each renewal.
Look for Additional Discounts
Insurance companies have many discounts for a variety of different reasons.
- senior discounts (drivers over the age of 55)
- good students (youthful drivers who maintain a 3.0 gpa)
- driver training (youthful drivers who attend driver’s education)
- pay in full (discount for paying your premium in full)
- auto draft (discount for setting up a monthly EFT auto payment)
- multi policy (deeper savings by having multiple policies)
- F E D (future effective discount when booking a policy in advance)
Time to Get Affordable Auto Insurance
Simple decisions can affect the price of your auto insurance. Choosing a higher deductible helps you save money each month. Shopping around and looking for discounts is another way to decrease the price of your auto insurance.
Auto insurance should be more affordable, but it takes some research and knowledge.
Contact us if you want additional advice on affordable auto insurance.