6 Secrets of Cheap Car Insurance

by Emma L. Business consultant

Car insurance is one of those services that everyone pays for but no one really understands it fully. For most of the drivers, the premiums are determined in a seemingly arbitrary way. However, this doesn’t have to be the case. With a few tricks, you can find a way to pay much lower premiums and still get the car insurance that will cover all your needs.

Add an experienced driver to your policy

There are a lot of factors involved in determining the car insurance premium, but one of the most important ones is who will drive the car. If you don’t have a lot of experience in driving, it’s very likely that your premiums will be pretty high for at least a couple of years.

There’s an easy solution to this. Simply, create a joint policy with someone that has more driving experience. Their years of driving will lower the premiums significantly and you could still be the one making all the payments based on the deal you’ve made. For a young person, such a deal could be made with one of their parents.

Driver

Local insurance companies

Small and local insurance companies often don’t seem to be trustworthy and a lot of drivers choose to avoid them and go for the well-known insurers they have already heard of. This makes sense but it’s also often a mistake. Local insurance companies often provide just as good policies at a lower price and offer a variety of discounts.

Ask around your community about the local insurance companies and pay special attention to customer satisfaction. If you haven’t heard any horror stories, don’t hesitate to try the company out.

Discounts

There are a lot of available discounts on insurance deals and they are mostly about combining this policy with other offers within the same company. This means that if you insure something else with your car, you’ll get lower premiums for both policies. You should consider this deal only if you own something valuable besides your car that you feel would be wise to insure.

For instance, you could insurance multiple vehicles at once or even your home or an apartment. Remember that these discounts apply only if you have a clean driving record on all the vehicles you’re trying to insure.

The type of policy

A lot of drivers don’t bother to check what kind of policy they are signing up for, which makes them end up with the most expensive option out there. You should try to choose the policy based on the car you’re using and the way you’re using it.

Different types of policies can be seen here and you should consider how they apply to your car. For instance, a comprehensive insurance covers all the weather and aging damages as well, and it’s quite costly. However, it only covers the value of your car, which makes the policy useless if you have an old car.

Old car

Make payments on time

This is pretty simple, but it often gets overlooked because it doesn’t seem like a big deal. By simply paying your bills on time, you can reduce the cost of your premiums significantly and save money in the long run.

Insurance companies often allow you to reduce your premiums after a while if you’ve been making your payments on time. There are also options to skip a month of payments when you have trouble coming up with the money if all your previous bills have been paid.

Pay per mile insurance

This type of insurance is only suitable for a certain type of drivers, but they could really save a significant amount of money if they opt for it. This insurance is specifically designed for drivers that don’t log a lot of miles and don’t get into accidents. It’s based on the number of miles you’ve logged in a year.

The only trick is that this only works if you use the number of miles per year. For most companies, this means that if you drive more than 10.000 miles per year, you can’t use this type of policy.

Bonus tip:

If you choose to pay a higher deductible right away, your monthly premiums will also get lowered. So, it pays off to save up for your car insurance and get a better deal in the long run.

These secrets will help you get the most affordable car insurance, but make sure you choose one based on the car you have and ways you plan to drive it.