Car insurance is one of those things you don’t want to spend your hard-earned cash on but can’t avoid (if you own a car). While you’ll be glad to have the coverage should you ever need it, you can probably think of a million ways you’d rather spend that money. To lessen the pain, we’ve highlighted a few simple ways you can reduce your auto insurance costs.
1. Increase Your Deductible
Lower your premium by raising your deductible. (The deductible is the amount you have to pay before your coverage kicks in.) However, a higher deductible means you’re on the hook for more risk should the unexpected happen.
If you ever have to file a claim, make sure you’re able to pay any out-of-pocket expenses. Consider putting away the money you’re saving on the lower premium for that “rainy day.”
2. Discover Discounts
Make sure you’re getting all the discounts you deserve by calling Wawanesa and speaking with one of our helpful agents. Even if you got all the discounts available when you bought your policy, certain life events can mean you’re now eligible for others.
An easy discount to earn: After your one-year anniversary with us you’ll be eligible for the loyalty discount. Further reductions can be gained if, for example, you bundle renters and auto, insure two cars on the same policy, or take a defensive driving course, to name just a few.
3. Drive Smarter
Statistically speaking, the less you drive, the less chance you have of getting in an accident. Fewer accidents mean fewer claims so insurance companies (ours included) love low-mileage drivers as they’re less risky to insure.
Being careful when you do drive pays dividends too. Driving defensively, observing posted speed limits, and generally paying attention behind the wheel mean you have a better chance of avoiding accidents and moving violations—events that could cost you more for insurance.
Secure Your Car
Your ZIP Code matters when it comes to insurance rates. Typically, you’ll enjoy lower premiums if you live in an area where break-ins and auto theft are less frequent like the suburbs or country. If you live in a busy, urban area and have to contend with traffic congestion, there’s more chance of accidents and fender benders.
4. Go Green
Environmentalists and insurance companies alike love it when you reduce your carbon footprint by driving less. Using public transportation, ride sharing, and walking or biking will lower your insurance rates with the added bonus of reducing auto running costs.
If you drive a bigger vehicle, in addition to spending more at the pump, you’ll typically pay more for insurance. You may assume that since big cars are generally safer to drive than smaller ones they would cost less to insure. But, in an accident, a large SUV has the potential to cause more damage so your liability coverage will likely cost more. For better auto insurance rates, choose a mid-size car like a minivan, sedan or even a smaller SUV.
There you have it. Four simple solutions designed to reduce your insurance costs. By making a few tweaks to your policy, your driving behavior, and your lifestyle, you could end up saving substantially on your car insurance premium. Then you’ll have the protection you need at the right price.