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Car insurance Policy
Car insurance Policy is a contract or agreement between you and the insurance company which protects your finances against a theft, an accident or any other natural causes or destruction of your insured car. The company agrees to pay a certain insured amount if any mishap happens to your car as outlined in the policy. The coverage includes Property damage, Liability or any medical bills.
Ways to save money on car Insurance
There are some ways you may save on car insurance. Lowering the insurance doesn't always mean lowering the standard or coverage. There are some ways to save without losing the quality of the coverage. The car insurance quotes are usually determined by the factors such as age, what kind of car you have, driving history, location, how much coverage you need, Types of coverage, How much deductible are you paying, credit score etc.
An important aspect to take into account while buying a car is its insurance coverage and it varies according to the needs of the car such as what type of car do you drive, how much will standard repairs cost, does it have high chance to be stolen etc.
Multi Car Discounts
If you own a single car and you ask a quote for the insurance, the company usually charges higher premium, but if you own multiple cars under the same insurance policy, then they may give you a discounted quote under certain conditions. The policy owners must reside in the same residence and they must be blood related or married. Two people who are not related but share the same car may also be eligible for discount.
Multi Policy Discounts
Some insurance companies offer discount if you own multiple policies such as Homeowners policy, Renters Policy, Auto Policy or Umbrella Policy under the same insurance carrier.
Safe Driver
The safer the driver you are, better the insurance rates will be. If you had a clean record with a good credit history, there might be discounts offered in coverage because the companies believe that if more of a careful driver you are, less worry you have to give about the insurance claims. If you have some violations in your record and the premium went high, adding a spouse with clean record may reduce your overall premium. Typically the violations stay in your record for 3-5 years.
Teen driver discounts
The insurance companies usually charge high premiums for the teen drivers, But, there is an option to lower the cost. If your student is Grade B or higher, then some insurance companies offer a Good Student discount which may last until the teen is 25 years age old. Some insurance companies also offer discounts while adding the teen driver to the parent's insurance who has a good driving record. If your kid is under the same insurance policy but are away from home and rarely drive, they might have a discount.
Safety Features
Some insurance companies provide discounts in the policy if you have a number of safety features added to your car. Some safety features may include airbags, daytime running lights, anti-brake system, anti theft system etc.
Safe Driving class
Some companies may offer discounts not only to reduce points on their driving record, they may also offer a discount on the insurance rates if you have a clean record. Be sure to ask your insurance policy provider before signing up for the class as the rules may vary based on type of company, location etc.
Good Credit History
It is very important to maintain good credit history to get a good quote. You may want to Check your credit history periodically to make sure the history actually belongs to you. There are a number of online services that allow you to check your credit history such a Experian, Transunion etc
Increasing Deductible
You may reduce the insurance premium by increasing the deductible amount. Deductible is the portion that you pay out of pocket in an event of accident or other circumstances. If you decide to do this, it is advisable to set aside a portion of the premium as savings for the emergency purposes.
Pay in Full
If you choose to pay insurance in a yearly basis, some companies may offer discounts for that.
Mileage and Telematics
The premium also may vary depending on how much you drive the car, insurance companies believe that more you are on the road more chances of getting into an accident. Telematics is concept of using an app or plug in device to track or monitor your driving record using GPS and how safe of a driver you are and policy is charged according to that. People who don't drive much or drive in unusual hours may try this option to reduce their premium.
Reduce Insurance Coverage on your old cars
If you have an old car and your collision and comprehensive coverage costs more than 10% of your current value of the car, you may consider dropping one or more coverage as it might not be worth it down the road.
The events and items covered by your insurance policy differs based on your policy and insurance provider. The conditions and limitations of the coverage vary upon your specific policy.
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