Here are few ways to reduce the premium cost of your auto insurance policy.
• High deductible amount – Choosing high deductible may bring down the cost of your insurance policy significantly. Deductible is the amount that you have to pay before your insurer pays for the claim that you’ve made.
• Academic brilliance – Usually, teenagers have to pay comparatively higher premium due to the proven fact that they’re more prone to causing road accidents. However, people below 25 years of age with the required academic grades may become eligible for getting cheap auto insurance rates. This is due to the fact that students with good grades are comparatively safer drivers, who’re less likely to cause accidents on road.
• Multiple policy discounts – You may lower down your total insurance cost by purchasing multiple policies from the same provider. For example, insure your vehicle, home, health from the same insurer. However, to do so, you may have to look for a relatively big company that offers wide range of policies to suit your multiple insurance needs.
• Dropping collision coverage – If you’ve driven your vehicle for quite a long time, then you may consider dropping comprehensive or collision coverage. Such coverage constitutes about 40% of your total premium cost. So, you may drop collision coverage when the claim payment is relatively less than what you have to pay for it.
• Good credit score – Your credit score is one of the most important deciding factors of your premium cost. If your score is high, then you may have to pay comparatively low premium for the same amount of coverage as compared to a person with relatively low score.
• Safety device installation – If you install certain safety devices (such as, anti-lock brakes, burglar alarm, etc.) in your car, then you may be eligible to get discounts on your auto insurance. Some states also offer extra discounts for certain things, such as, window sketching.
Do you know that the type of your vehicle is an important factor that the insurance underwriters take into consideration while deciding the premium rate of your auto insurance policy? Yes, it is true. So, keep this in mind while buying a new car. You may have to pay a comparatively higher premium if you purchase a luxurious vehicle whose replacement cost as well as theft rate if relatively high.