5 Practical Ways to Keep the Cost of Auto Insurance Coverage Low

Every motorist wants to keep car insurance affordable but this may not be easy especially if you do not know how to go about it. Car insurance is a necessity meaning that every motorist should have at least a liability insurance coverage, which covers damages and injuries on other motorists. Insurance payment may turn out to be a burden if you do not know how to keep them affordable. There are good ways you can keep your insurance cost minimal and they include switching your insurer and being loyal to an insurance company.

1.    Switch your insurance carrier
You can change your auto insurance carrier if you have a good credit report. At times, you will find that some insurance companies offer different premium rates for same coverage like collision or comprehensive. It is a good idea to consider switching a carrier that offers cheaper rates. However, you need to ensure that your credit report is good before you make this decision.

Motorists with bad credit report may pay more on insurance premiums. You are likely to pay 20 to 50 percent more if you switch your carrier and you have a bad credit report. It is better to stick with your current insurer if the credit report is tainted.

2.    Evaluate the reputation of an insurer
In addition, before you change the insurance carrier, you should research to ensure that the company is reputable. Insurance companies lower premium rates to entice you to buy policies with them not realizing that this may be a trap. It is usually not good to pay cheaper insurance premiums only to be subjected to a daunting experience when you get involved in an accident and place a claim.

Before you even think of switching the carrier, check on the complaints put forward by consumers about a particular insurance company. There are state logs complaints that can provide you with information about the different insurance company complaints. What this means is that a high number of complaints should raise red flags on the competence of the company to provide hassle-free claim processes.

3.    Be loyal to your insurance company
Another way you may lower your insurance cost is by being loyal to your insurer. Some companies reward their loyal customers with discounts and if you switch carriers, you may deprive yourself these benefits. Besides the discounts, there may be other benefits offered to motorists who have demonstrated good driving ethics.

If you have maintained a clean driving record, you may most likely get discounts on your premiums. Similarly if you have installed your car with security systems and safety equips like airbags, you will most likely receive discounts. An old driver who completes safe-driving course may also benefit from discounted premium rates.

4.    Consider raising your deductable
Motorists should also consider raising their deductable amount to reduce the costs of paying premiums. The higher the deductable amount you quote the less premium rates you are likely to pay. However, as a precaution, you should not quote very high deductable that you cannot afford to pay when your vehicle is damaged and needs repair. You will need to pay the deductable amount towards the cost of repairing the car.

5.    Drop some coverage
You may consider dropping some of the coverage if your car has covered high mileage. Coverages like comprehensive and collision may not be appropriate for old cars that have covered many mileages. You are likely to be paying more in insurance premiums if your car has covered many mileages. You can do away with collision and comprehensive coverage and remain with liability coverage. This way, you will cut down your insurance cost.