6 Tips to Lower the Cost of Your Auto Owners Insurance
6 Tips to Lower the Cost of Your Auto Owners Insurance - When it comes to insuring your car, you have two options: You can either buy traditional third-party liability coverage and pay high premiums as a result, or you can take an alternative approach and get an auto-owners policy. The latter is much cheaper than the former but still gives you plenty of useful benefits if something bad happens. Insuring your car isn’t cheap. Even if you own a small economy car that is fairly inexpensive to repair, the cost of insuring it for a year will be several hundred dollars. As with any insurance policy, the more risk factors you have in your life, the higher your premium will be. If this sounds familiar and stressful, read on to learn about six ways you can lower the cost of your auto owner's insurance even further!
1. Estimate your auto insurance needs
The first step to lowering the cost of your auto insurance is to estimate how much you need, as this will affect your premium. If you have good driving records, a minimum coverage limit of $100,000 will be sufficient. For drivers with two or more at-fault accidents or moving violations in the last three years, a minimum coverage limit of $300,000 is recommended.
2. Shop around for the best price
Auto owner's insurance is a highly competitive industry, and there are many providers and policies to choose from. You can start by visiting websites like Insure.com, where you can compare quotes from several providers and find the best deal. If you have a car that is very old and has a high risk of being stolen, you may have to pay a higher premium. However, if your car is equipped with safety features like anti-lock brakes and an airbag, you may be eligible for a discount.
3. Ask for a Good Driver Discount
If you have been driving for several years with no accidents, fatalities, or moving violations, your auto owner's insurance provider might be willing to give you a good driver discount. This can lower your premium by up to 20%, which is a great way to save money and reward yourself for being a safe and responsible driver.
4. Consider a short-term insurance plan
Short-term auto insurance plans are designed for people who need to get new policy coverage quickly. If your auto owner's insurance expired and you have no time to shop around and shop for a new policy, you can turn to these providers and get coverage immediately. A short-term auto policy covers risks such as accidents, vandalism, and theft. It might also cover medical costs if you or your passengers are injured in an accident. If you do not have an established driving record and are looking for cheap auto insurance, a short-term policy might be a viable option. This is because most short-term policies are calculated based on your age and annual mileage, rather than your driving record. These policies often come with high deductibles, but they can be much more affordable than a standard policy.
5. Get an auto loan with built-in insurance
If you are financing a car, it might make financial sense to get an auto loan with built-in insurance. This is a type of policy that your car dealer will offer you and can be a great way to get a low premium. Fortunately, auto lenders are required to disclose the amount of the insurance premium and how long the policy is expected to be in effect. If you have a long time remaining on your policy, you can switch to a lower-cost policy at any time. However, if the dealer advises you to keep the built-in insurance, you should do so until your regular policy ends. At that point, you can go to another company and get a low auto insurance quote.
6. Final Words
The cost of auto insurance is determined by many factors. While you cannot control all of these factors, you can at least do your best to minimize them to help keep your costs low. If you follow these tips, you can lower the cost of your auto owner's insurance. But, the best way to lower your costs is to drive more safely. If you keep your driving record clean and drive responsibly, you could save hundreds on your auto insurance each year.