When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.
The amount of money you pay every month towards your car insurance premiums is not set in stone. Thus, there are several ways you can reduce your car insurance premiums to allow you to save a bit of money every month.
Here are four of the most efficient ways to get a car insurance company to minimize your premiums.
Ask For a Higher Deductible
A deductible is the amount of money you pay towards a claim before the insurance company takes over the rest of the costs. Deductibles and car insurance premiums have an inversely proportionate relationship. Hence, the lower the stipulated deductible on your car insurance, the higher the premiums you pay.
From an insurance company's point of view, if you will only pay a small deductible towards a claim, it means the company will have to cough up most of the value of the claims. Hence, they need to charge you more on premiums to facilitate having sufficient money to cover the lion's share of the claim and still profit.
Hence, if you want to minimize the premium costs, you should consider negotiating a higher deductible on your car insurance.
Buy Your Insurance Covers from the Same Company
If you already have homeowner's coverage, medical coverage, and life coverage with one insurance company, it is advisable to get your car insurance from the same company. Having multiple insurance covers with one insurance company enables you to negotiate lower premiums because you are a loyal customer.
If you have had the other insurance covers for a long time with the insurance company, they will consider a discount on your car insurance premiums because you are a long-time customer.
Consider Taking a Defensive Driving Course
When determining your car insurance premiums, insurance companies will run background checks on your driving license to determine your level of driving experience and your likelihood of causing an accident.
A defensive driving course teaches drivers how to handle their vehicles in extreme situations to avoid collisions or accidents. As a result, most insurance companies are willing to discount your car insurance premiums when your driving license includes a defensive driving course because you are less likely to cause an accident.
Minimize the Value of an Old Vehicle
One factor that determines your car insurance premiums is the vehicle's value when you take up the insurance cover. If you have had a vehicle for several years, its value has significantly depreciated. Thus, there is no need to pay high premiums on a vehicle that has already depreciated in value.
Hence, after every five years, it is advisable to revise the value of your vehicle stipulated in your car insurance policy. Adjusting the vehicle's value by factoring in its depreciation, your car insurance provider should also lower the premium amount to match the value of the vehicle.
Share11 May 2021
