18 August 2021

4 Effective Tips To Lower Your Car Insurance Costs

As you take up more responsibilities, certain costs and necessities such as rent, cell phone service and gas will arise and can add up quickly. The same applies to car insurance. Fortunately, you can lower your auto insurance costs, similar to how you search for deals when shopping. A recent report suggested a 20% increase in car insurance prices. If you are reading this, you are probably thinking about what you can do to keep your costs down. If so, continue reading to learn four ways to achieve this.

1. Shop Around
You can bargain on daily purchases when you shop around. You can do the same with your auto insurance. Whether buying car insurance for the first time or renewing an existing policy, you cannot overlook the cost-saving of comparing quotes from multiple insurers. The same policy can differ among insurers, and you will be surprised how much you can save when shopping around. Experts advise getting quotes from at least three insurers and comparing them to find one that suits your budget and offers the best protection.

2. Buy a used car
Insurers don't offer specific insurance policies for new and used cars. Yet, the vehicle make and model can significantly affect your insurance costs. Generally, monthly payments on a used vehicle will cost less than a new one. For instance, a 2022 car model will likely have more costly replacement parts than its predecessors, driving up your insurance cost. Although it may have modern safety features for additional savings, buying a used car which has passed the industry’s safety checks and standards can guarantee you get the most bang for your buck. You can consider options like approved used SEAT cars to enjoy the most cost-saving.

3. Keep a good credit score
A good credit history can reduce your car insurance cost. Many insurers review your credit history to price your car insurance plan. A lower score may suggest you are likely to engage in unsafe behaviour and file for claims. For this reason, your insurer may increase your premiums to cover the supposed risk. Set your bills timely, avoid taking more debt than you can pay, and keep your balance at the bare minimum. Also, regularly review your credit report and promptly rectify any inaccuracies and errors before they affect your credit score.

4. Allow your insurer to monitor your driving
Some insurers allow you to enjoy discounts on your premium if you sign up for usage-based insurance. Your insurer will plug a device or use an application to monitor your driving behaviour, including speeding, driving miles, and how frequently you slam on your brakes. You may qualify for a discount if the program’s data shows you are a decent driver and enjoy a price cut of up to 30%, saving you significantly. Meanwhile, you may also increase your insurance rates if the data shows a poor driving habit. Ultimately, used-based insurance is best if you drive safely and have low mileage.
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