4 Ways to Getting a Cheaper & More Affordable Car Insurance

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Whether you have just bought your first vehicle or have been driving for a while now, one of the main responsibilities you have as a car owner is to obtain car insurance. This insurance offers plenty of benefits including protection and financial compensation for any damages or injuries you and other drivers sustain during an accident.

However, like most types of insurance, auto insurance can be quite expensive. Its average cost may depend on several factors including your age, gender, location, driving record, the type of insurance policy you choose to purchase, as well as the car’s make, model, and production year.

Fortunately, there are a few strategies you can try to knock some money off your premium and get more affordable car insurance. Here is a brief list of four ways to do so.

Shop around for different insurance carriers

The first and most important thing you should do is shop around for different insurance carriers in your area. The rates can vary depending on where you live and the company’s internal policy. So, it is advised that you do your research to find an insurance carrier that offers the best services and most affordable prices for you.

You can ask for recommendations from family and friends, search for online quoting websites or consult with a local insurance broker to help you with your search. For instance, if you live in the Alberta province in Canada, compare rates from at least three companies to find the best car insurance Alberta has to offer, before settling on the one that meets all your unique needs.

Bundle all insurance policies together

Another great way to lower the rate on your car insurance premium is to bundle all insurance policies together.

For example, you can purchase a home and auto insurance from the same insurer and get a much more affordable price for the entire policy. You can even add umbrella insurance to your policy to protect you from liability beyond what your home or auto insurance covers.

If you own more than one vehicle, you can also take advantage of the multi-car discount and insure both cars within the same company. Companies offer this type of discount because they want you to do business with them, and are willing to give you a deal if it means you will consider them again.

Increase your deductibles

When you are choosing your car insurance you can opt for a deductible. This is the amount you would pay before insurance picks up the tab in the event of an accident or any damages to the vehicle. Depending on the type of coverage you purchase, the deductible can go up to $1,000. The catch with this is that the lower your deductible is, the more you will pay for your annual premium.

So, if you want to lower the cost of your premium, you should go for a higher deductible. For more information, you should consult with your insuring agent to see how much the premium will change if you raise your deductible.

Keep a clean driving record

Although being a careful driver should go without saying, you can take advantage of this matter and use it as a way to lower the cost of your car insurance premium. The rule of thumb is the safer driver you are, the better and cheaper rates you will get for your policy.

While major auto insurance companies may have different criteria for what exactly constitutes a safe driving record, some standards you need to meet include not having been ticketed for a moving violation or not causing an accident. There are some companies that also consider you to be a safe driver if you have never made a claim, no matter who was at fault during an accident.

Photo by Cristofer Maximilian from Unsplash

Final thoughts

While obtaining car insurance is a mandatory cost, it doesn’t mean you cannot reduce the cost of your annual premium. In fact, there are several strategies you can try to knock some money off your premium and get auto insurance coverage that provides the protection you need for a fair price.

If you want to know how to get affordable car insurance, refer to our post and learn how to obtain the cheapest rate possible.