What is auto insurance?
Auto insurance is essentially a contract that offers protection if you have an accident or your car is stolen. You pay a set premium, and then your insurance company will pay out your losses, as stated in the policy. Auto insurance offers coverage for liability, for example, if you injure others or their property. You’ll also get coverage for medical expenses, for instance, the expense of treating any injuries you sustain. Auto insurance also covers costs associated with damage to your own vehicle or theft. Of course, there are plenty of different auto insurance policies out there, and not all are the same price. To save money on your auto insurance, try the following hacks.
1. Improve your credit rating
Many auto insurance companies will check your credit rating to determine which kind of policy they can offer you. Supposedly, auto insurance providers view an excellent credit rating as an indication of a responsible person, who is not a risk to insure. Now, this may not be the case in all circumstances; however, improving your credit rating is one way to get yourself a good auto insurance deal. There are a few sites online where you can check your credit rating for free.
2. Look for discounts
Some Auto Insurance providers offer discounts under certain circumstances, so when you’re looking to bag yourself a good deal, it’s useful to know which discounts are available. Low mileage discounts are available for drivers who habitually keep their mileage average or below average, so if this is you, it’s worth checking if you qualify. Another discount available is a ‘multi-policy discount,’ meaning that you will pay less if you buy another policy from the same provider. The second policy could be life insurance or home insurance, for instance.
3. Compare costs
It’s impossible to save money unless you compare prices first. You might be tempted to renew your current auto insurance policy, but if you don’t shop around, you could be missing out on a better policy elsewhere. There are several handy price comparison websites online which will allow you to suss out the best deals!
4. Increase your deductibles
When you are looking for auto insurance, you can generally pick a deductible that suits you. A deductible means the amount of money it will cost you to get your insurance provider to payout ( if your vehicle is stolen or you’re in an accident). Usually, deductibles range from around $250 to $1500. If you put your deductible up, then you’ll benefit from paying a lower premium.
With plenty of motoring costs to pay out for, you’ll be glad to keep your auto insurance costs down. While you’re at it, look at other ways you can save money on your car expenses. One thing you can do is to use apps like ‘Gas Buddy’ to check the price of fuel stops nearby. When you check the app beforehand, you can find out the cheapest deals and drive on if you’re not happy with the price!
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