You might be wondering why your friend has different car insurance expenses from you, and your boss is paying a seemingly unrelated amount. Do you know the reason? The reason why you pay the different premiums is that the insurance company takes a lot of factors into consideration in computing your premium.
Take a look at some of these factors that, when your current insurance lapses and you will have an idea of how you can save or can have a discount.
Avoid expensive and sporty cars.
If you’re thinking of buying a new car, take into consideration the insurance cost. One factor that insurance companies base their premium is on the type of car you have. This includes the additional costs for repairs and the likelihood of theft. It’s a good move for you if you avoid buying expensive, big and sporty cars since these are hot in the eyes of thieves.
Instead, think of purchasing a small but safe vehicle that can potentially give you a discount in insuring it. Furthermore, a car with multiple safety features like anti-lock brakes, electronic stability control, automatic seatbelts, and others for these kinds of functions will earn you another discount.
Shop around for the lowest premiums.
It is wise to obtain a quotation from various insurance companies. Competing companies make a strategy of lowering their premiums to attack more customers. Remember that the cheapest is not always good. In addition to the premium, see to it that the company status or stability is not compromised. Common factors that can affect the costs of your comprehensive insurance include the amount of the excess, optional extras, and where you park your car, this can also change depending on your country.
Look upon their premiums and background so you can make sure that the company is stable. What is the use of your standard policy if the company cannot pay at the time that you need it. As a rule, look for insurance companies with a low premium, stable, and with credibility to pay.
Try taking a defensive driving course.
Ask the insurance company if they are giving a discount if you are partaking in a defensive driving course. Double-check to make sure before you sign up for a lesson. Most insurance companies are offering this kind of rebate, so ask around. Having this lesson is also advantageous to you because it will reduce your chance of avoiding accidents and, at the same time, reduce the number of points you have on your license.
Another top tip, as listed by Geico, is to develop the right attitude about driving. These lessons can reduce the chance of an accident, which will save you lower your car insurance expenses.
Consider the mileage of your travel.
Home and work. They should not be far apart from each other. I’m sure that you considered this case when you choose where you will leave and where there is a safe place to park your car. You don’t want to travel or commute for an extended period in just going to work every day. You will want it to be accessible and convenient for you.
Your plus factor, if you don’t know it yet, is that when you buy a car, you’ll have a lower premium based on the mileage you’ll use traveling from home to work. You can have a discount from a low mileage average a year.
The shorter your traveling time, the lower your premium will be. For the company, it means you have less time on the road and therefore reduces the possibility of your involvement in an accident.
You can use various ways and strategies to lower your car premium and save a lot of your other expenses. Be wise in choosing the bonus that best suits you. Remember that the goal of having insurance is having financial protection against any unforeseen circumstances.