How to save money on car insurance
Car insurance rates are rising, so how can you save money on your car insurance? We’ve put together a list of the easiest way to help reduce the cost of your insurance premium.
Compare Car Insurance Costs BEFORE You Buy Your Next Car
Car insurance premiums are calculated based on a number of different elements. Specifics like the value of your car, the cost to repair it, and the likelihood of it being stolen all have an impact on the premium you pay. Most insurance companies will apply a discount for cars that have a high safety rating and features that reduce the risk of car theft, like alarms and immobilizers or tracking devices.
When you’re looking at new or used cars, we recommend comparing insurance quotes on each model you are considering so that you don’t pay a higher premium than you can afford. Buying a car model with a high safety rating that doesn’t cost much to repair or replace can help you save money on your car insurance premium. You can view the safety rankings for some car models online with the Insurance Institute for Highway Safety’s Top Safety Pick ratings tool.
Compare Car Insurance Quotes
Insurance rates differ from one carrier to the next, so we recommend that you shop around and compare quotes either online or through a licensed agent. We would suggest getting at least 2 or 3 quotes from different carriers and carefully read the fine print to compare the level of coverage in all of them. You could also ask family or friends for companies that they’d recommend, however, make sure that the company they recommend is not tied to one specific carrier. You really need to use an independent agent or website like Coverzoo or any of the other insurance comparison websites to get a truly independent quote from multiple companies.
Bundle Insurance Policies
Most insurance providers will give you a discount if you bundle 2 or more insurance policies with them. If you’re renting a home and have a renters insurance policy, or if you’re a homeowner and have a homeowners insurance policy, this can help save you money if you keep both the home and auto policies with the same insurer. Also, if you or your partner have a second car you could bundle them with the same carrier to reduce the cost of both policies.
Stay Loyal
Some insurance carriers will offer a discount to long-term customers that stay with them for certain periods of time. This isn’t the case with all carriers so shop around and compare quotes before you renew your current policy with an existing insurer.
Increase The Excess/Deductible
If you can, increase your deductible or excess amount before you buy your next policy as this can reduce the cost of your annual premium. You will need to have the amount you select at hand if you need to make a claim, so make sure that you choose an affordable amount.
Reduce The Level of Cover
If the value of your car is $40,000 and your premium is $2,000, then we think you should have fully comprehensive insurance to cover the loss of that car in the event of an accident or theft.
However, if your car is worth $3,000 and your premium is $2,000, it might be worth considering a lower level of coverage if it can significantly reduce your premium. You can use sites like Kelley Blue Book or TrueCar to check the value of your current or future car.
What We Offer
Coverzoo is an independent car insurance platform set up to help reduce the cost of your car insurance. We work with companies like Farmers, Travelers, Nationwide, and more of the leading car insurance carriers to compare quotes and hopefully, save you money!