Best strategies to lower your car insurance premiums – Save your hard-earned dollars

There’s no doubt about the fact that owning a car and maintaining it costs the owner a lot of money but that doesn’t mean that you’ll go broke over car maintenance costs. Simply owning a car without a car insurance policy is a big mistake that several vehicle owners commit. The reason behind this might be ignorance or soaring car insurance rates or even inability to afford the premium rates.

Thankfully, there are several strategies that you can follow in order to lower the insurance premiums on your car. What are they? Read on to know more on this.

#1: Minimize coverage on cars that are old

In case the car that you drive is old and paid for, choose to cancel the collision coverage. This coverage usually pays for any kind of damage which is caused to the vehicle and it constitutes a big part of the cost of insurance. Hence, for older cars, eliminate collision coverage to save money.

#2: Shop around for comparing quotes

Just as you compare car costs from sites like Auto-Doc.PT , similarly you also have to compare costs of your car insurance policies to ensure that you choose the best one in the market. Get minimum of 3 price quotes and you can call the companies or access details on the internet. You may also seek help of the state insurance department to offer comparisons of prices. Your ultimate goal shouldn’t be to settle down on the cheapest policy but rather it should be settling down with the policy which offers you best coverage.

#3: Choose to pay down higher deductible amount

Deductibles are the money that you pay from your pocket before the benefits of the insurance policy kick in. When you request higher deductible, you can reduce the costs in a substantial manner. For instance, instead of paying $200 towards your deductible, if you increase the amount to $500, you could minimize your coverage costs by at least 30%. However, before you select a higher deductible amount, make sure you will be able to pay that amount out-of-pocket during an emergency.

#4: Maintain a positive credit record

When you establish a positive credit history, this implies that you are responsible about dealing with your finances. Majority of the insurance companies will demand your credit details to know what kind of a financial person you are. Continue to pay off your bills on time, don’t seek more credit than you can afford and maintain low card balances. Also check your credit record on a regular basis so that you can spot errors and keep them accurate.

#5: Seek help of discounts for low mileage

There are some companies which give you discounts for driving lower than the average number of miles that you should drive in a year. If you too can qualify for low mileage discounts, you can save money.

Therefore, if you’re wondering about the ways in which you can save your dollars on your car insurance policy, take into account the above mentioned tips.