Cheap Car Insurance

The cost of driving is going up and the trend will continue. There’s not much you can do about the cost of gas and maintenance (except modify your driving habits to save as much as you can) but you can reduce your insurance costs by looking for cheap car insurance. Cheap does not mean taking a cut rate policy from an insurance company with a dubious reputation or cutting back on the amount and types of coverage. Cheap car insurance means looking for ways to cut down on your premiums while enjoying the best standards of service and coverage from reputed insurers. There are many ways to cut premium costs that insurance companies often do not publicize. Go through the list below and contact your insurance company to see where you can save.

  • The first thing to do on your search for cheap car insurance is to install anti-theft devices. Insurance companies have a list of the devices you can fit to reduce your premiums. The costs vary depending on the type of devices you fit so it’s important to balance the cost of what you install against the savings over a period of 3 or 4 years. It’s in the insurance companies’ interest to have these devices installed so the discounts are usually very attractive.
  • Apply for yearly policies. This ensures that even if insurance rates go up, your costs remain the same for the whole year. Also make a one time payment for the policy. Insurance companies offer quarterly and half yearly installment plans but add on administrative charges to these installments that push up the cost.  Looking at a small quarterly payment may give the false impression that you are getting cheap car insurance, but when the cost is totaled for the year, you will be paying more than you need to.
  • If you have more than one car, cover them both under the same policy. Insurers offer multiple car discounts because their overhead is reduced.
  • If you will not be using your car for an extended period, ask your insurance company for Comprehensive Storage Coverage. Since the car will not be in use there is no need for liability coverage and you can save on the premium. Keep in mind that this type of cheap car insurance is to be taken only when the car will not be used for a long time and full liability coverage must be resumed when you start driving it again.
  • The distance you drive to work affects your premium. Insurance companies categorize the distance into specific blocks and the higher the distance the higher the premium. Rechecking your distance or changing your route could put you in a lower block and reduce your insurance costs.
  • A great way to easily get cheap car insurance is to look for group discounts. Many insurance companies offer discounts for specific affiliations like being a member of a credit union, having a specific credit card, etc. Check with your insurer about the group discounts available.
  • Some companies offer discounts to those who have attended approved Defensive Driving courses. Not only will this get you cheap car insurance, it could also save you from accidents and injury.
  • When applying for insurance, make sure your credit rating is good. Most insurance companies check an applicant’s credit history and base the premiums on the rating. Cleaning up a not so good credit history before applying for insurance can result in a sizable saving.
  • Ask your insurance company about discounts offered for teen drivers with good Driver’s Ed scores.
  • Check with your insurance company if your comprehensive and liability insurance covers rental car use as well – it often does and the savings can be considerable.
  • Many companies offer discounts to people who take car and home insurance from them. You will get cheap car insurance as well as reduce your home insurance costs.
  • Some companies charge extra for mail payments. You can save by using Electronic Funds Transfer (EFT).

You may be automatically qualified for some of these discounts, may have to make some effort to qualify for others and some may just not be possible. But checking out all the options available to you can result in cheap car insurance with no reduction in the amount and quality of the coverage you receive.

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