Auto Insurance can be difficult to understand, mainly because it is comprised of several different components. However, once you know that an insurance company generally bases prices on risks, it’s easier to understand how you can control rates to some extent with good driving behavior. You can further lower your rates by determining if you qualify for discounts.
Here are a few ways in which you can cut costs on car insurance.
1. Minimize driving time
One path toward a lower car insurance premium involves cutting down on driving. Many people have learned to drive less during the pandemic and have reduced visits to public places for the sake of social distancing. Let your insurance agent know about your plan to reduce annual mileage and ask for your premium to be reduced. There are plenty of transportation alternatives to driving your own car, including carpooling, public transportation, riding a bicycle, or walking.
By driving less, you are automatically lowering your risks of being involved in an accident. You can also maintain a low premium by driving defensively and obeying traffic laws. However, no matter how safe you consider yourself to be as a driver, you must still watch out for other drivers who may be either drunk, distracted, visually impaired, or struggling with an automotive malfunction.
2. Raise your deductible
Another way to a lower car insurance premium is to raise your deductible, which is the amount you pay out of pocket before the coverage kicks in. Usually, a higher deductible means a lower monthly premium, which means you will be paying more on your own if you file a claim. Hence, make sure to determine the amount of deductible you are willing to pay based on your risk management strategy.
3. Review your policy
Looking over your policy from time to time will keep coverage details fresh in your mind. Ask yourself if the coverage is up-to-date with your needs, which may change over time. Although no one plans on getting in accidents, they can happen anyway, so it’s best to be prepared for the worst. Talk with an insurance agent to find out if you need extra coverage for any of your concerns.
Many drivers don’t bother with details on insurance coverage because they believe that they’ll never be involved in an accident. They may also assume that their minimum coverage takes care of everything, including a tow truck when they need it. However, all insurance plans have their own specific limits, so it’s always good to have a clear understanding of what your policy covers.
4. Take care of your vehicle
One of the most reliable strategies to keep your car insurance rates low is maintaining a healthy vehicle. Whenever your car shows any sign of trouble, have it inspected by a professional who can let you know right away the level of concern for safety and performance. Certain problems such as oil leaks can turn into bigger disasters down the road, so they need to be taken care of immediately.
Keeping your vehicle in good shape will help you avoid breakdowns that require towing or might cause an accident that leads to damage. You certainly never want to drive around with squeaky brakes, knowing that you are increasing your risk of not being able to stop when necessary. Many accidents occur due to neglecting maintenance and proper care.
5. Speak with an agent
Several other strategies can help lower your insurance bills. The best way to learn all your options is to speak with an experienced insurance agent who understands the various ways to customize a policy. It’s possible to get all the coverage you need without stretching your budget.
Understanding how to lower your auto insurance premium can help strengthen your plan for a tighter monthly budget. For assistance with all your coverage needs, contact an insurance professional at Westwood Insurance Agency today.
