With the number of cars on our roads increasing and the propensity of drivers to be careless or distracted, the number of car accidents is also increasing. According to https://www.nsc.org, an estimated 38,800 people died in vehicle crashes in 2019. Insurance companies thus have to face a growing number of lawsuits as well as claims for crash repairs. However, drivers can take several steps to reduce policy costs.
Driving safely is the principal method by which you can drive down your policy cost. The more careful you are while driving, the lesser the number of moving violations and the chances of meeting with accidents, both of which are primarily responsible for the rise in your premium.
Undergo a Defensive Driving Course
Since insurance companies want to encourage safe driving, many of them give discounts to drivers who undertake accredited courses in defensive driving that teach the importance of driving in such a way that prevents accidents proactively even when others are not so careful. However, before undertaking a course, find out whether your present insurance company gives you the discount else the investment would not help you to reduce your premium. Be sure to sign up only for courses that are accredited in your state.
Drive a Smaller and Cheaper Car
Buying a large and expensive sedan, a sports car, a fancy SUV may be a very satisfying thing for your ego and social status, but you should also be ready to fork out large amounts for insuring it. Apart from the price of the car, insurance companies also look at things like how likely those models will be involved in an accident or be stolen besides the cost of repairing them. A low-cost car will not only be cheaper to insure but also less expensive to run and maintain. Some insurers also give discounts for electric or hybrid cars to encourage eco-friendly practices.
Plan to Drive Less
Among the many factors that influence your premium is the number of miles, you will drive every year. This is because the more the vehicle is driven, the higher the chances of it meeting with an accident. It is a good practice to use the car as sparingly as possible so that you keep it within a mileage slab that gives you a good discount. Using mass transport like buses or trains is also a greener option. Driving less finds a special mention in the online guide, “Finding the Best Cheap Car Insurance: Top Tips from 5 Auto Insurance Experts.”
If you have multiple cars or drivers, asking the insurance company to bundle the policies can usually get you a handsome discount because they want to benefit from the larger business. You can also ask your agent about the discount applicable if you move your homeowner’s policy to the same insurance company. While the premium increases to cover teen drivers, you can get a discount if the child gets and maintains a good academic record.
To further reduce your insurance policy cost, ask your agent about the different discounts given by the insurance company, increase the deductible amount, and if necessary, shop around for better rates.