Top 5 Cost-Cutting Strategies for Car insurance

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Seeing a big and shiny car parked outside your house would truly make you feel great. It seems like it’s one of your priced treasures which you’ve saved enough for and carefully chosen as a reward for yourself or your family. But more than the comforts that cars can bring us, it also entails a lot of costs, like changing gears, clutch repairs and different kinds of upgrades for maintenance to make sure that we can optimize its function across the years. In light of the depreciating cost of cars, car insurance was formed to co-opt the different challenges that you might incur with such a property.


As we all know, an auto insurance is a mandatory legal requirement whenever you purchase a car. In its broadest sense, we basically pay a certain amount of money to insurance companies to prepare us from an upcoming risk. With this, those insurance companies can absorb the cost whenever you met an accident. Sometimes, we find these premiums too costly, and the more risks that you transfer to them, the larger is the amount that you will pay. But it’ s a risk that we have to turn in exchange of a greater benefit in the end.

But that’s not it. We have a wide array of options to curtail the costs that we’re going to incur in the future for our cars. We can cut the cost of the premium insurance by minimizing the risk transfer and by following these tips that we are about to show you. So read this and learn how to get the best out of your insurance without overpaying them for their financial service commodity.

1. Keep a clean record. Most car insurers assess the driver’s risk in order to determine how much the diver should pay to be insured. This will include the driver’s individual record and driving records of your family. If found that you had a bad record, then insurers will likely predict that they’ll be absorbing a good amount of cost. With these, they’ll surely increase the price of your premium deal. So as a precaution, keep a clean record. With this, insurance companies will be convinced that you won’t be a burden to them on the underwriting process and you can maximize the discounts.

2. Carefully choose your coverage. The state mandates a certain minimum coverage to be covered in your insurance but  it varies among different policies. So carefully choose a policy to avoid paying unnecessary insurance premium costs. For those who aren’t familiar wit the auto insurance policies, here is the basic coverage:

  • Liability covers physical injuries to other people, including compensation for expenses that might arise from such injuries, and damage to other people’s property
  • Comprehensive and collision covers damage to your car due to collision or overturning, fire, flooding, or theft (there is usually a deductible).
  • Uninsured (or underinsured) motorist covers the expenses of an accident if the other driver has insufficient insurance.
  • Medical protects you against medical costs for injuries to you and other riders in the car

 3. Look around for the best deals. Just like other businesses, car insurance companies competes in the market. With this, discounts will be available throughout these different companies and maybe you’ll find a deal that will suit your auto insurance needs. You are likely to save up to 30-50% of the usual cost. But before settling in a certain insurer, always keep in mind that cheaper is not always better. Better check the profile of the company and see if their records are clean. Ask your colleagues and friends about their carriers. Their reviews will be helpful in your decision-making.

4. Collect the benefits you are entitled to. Always make sure that you obtain a fair settlement and payment on a claim as soon as possible. Start compiling the files of the accident and notify the insurance company of the claims you have submitted. If the claim is taking too long, check your policy to see whether interim rental car expenses are covered. If so, rent a car. Surely, these insurers will be motivated to speed things to avoid incurring the cost.

5. Drive safely and remember to take your key. Nothing beats this reminder. Accidents will surely increase the premium costs and the worst is that insurance companies might refuse to renew your policy. Also, don’t forget your keys. A car is stolen every 19 seconds in the U.S. and over 20% have the key in the ignition. No one else can seal the security of property. You have a direct accountability in protecting it.

Remember that these cost-cutting strategies, if used properly, can really help you in cutting the cost of your car insurance. There are a lot of considerations attached to this comfort of life. But nothing beats a prepared mind before the need arises.  And that’s the side that you have to consider.

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