Many families are looking for ways of cutting their household costs and auto insurance has a large share in the budget. There can be many ways of reducing premiums but many motorists want savings and they want them now. They cannot wait to improve their driving records, license points to be deleted or credit score to improve a bit so that they can save money. Even though these progresses will have a large effect on their costs it may be dealt with in the long run. Here are a few methods of cutting premiums down a bit.
Look at Your Driving Habits, Car and Listed Drivers on Your Policy
Many motorists are paying surcharges because of these factors. For example, you may have never allowed anyone else except your partner to drive your automobile and it may be unlikely that you will ever do. Standard policies provide coverage for occasional drivers who use the insured vehicle with the permission of the owner. Obviously this is additional risk for insurers and they have to account for it in their premium calculations. It is possible that you can get a lower premium if you restrict drivers to only listed ones. This will clarify the position better for underwriters and they can offer good deals as a result.
Also, some drivers on the policy can be reduced to occasional drivers. For example, you may have a teenager who comes home occasionally from college or army training and you provide insurance coverage for him/her. You can talk to your insurer and ask them calculate the premium based on their limited usage of the vehicle. Teenagers are high risk group and affect your car insurance rates considerably.
Pay attention to what type of cars you buy. For example, older drivers can be more comfortable and save money if they bought an elderly friendly car that can be adjusted accordingly. Being already high risk they would be paying a lot more uselessly if they have a fast or sporty car. They are unlikely to test the powers of those vehicles to the limit.
Many people like the idea of owning an automobile but they do not drive it as much. Many people prefer to take the subway or train in big cities because of heavy congestions on the roads and costs of parking in city centers. However, your insurer would not know this fact. You should explain to them that your vehicle hardly leave the garage most of the days and you do not use it for commute. Companies do include commute and distance between home and work when they calculate premiums.
Don’t Try to Insure 100% of the Losses for 100% of the Time
In most cases it is impossible to do that anyway. Motorists can save hundreds of dollars every year by assuming higher risks. The easiest way of doing it is by increasing deductibles that will decrease premiums. Many motorists do not have accidents often and a few go years without one. In such circumstances it is a simple math to understand the benefits. For example, increasing deductibles from $500 to $1,000 could save you $200. If you have not had an accident in the last five years you can understand its value to you. In the next five years you can save $1,000 should you not have any accidents. If you have only one you pay $500 more deductible but this does not matter since you saved $1,000 already.
If you have two accidents then you would still save money. How you may ask since your savings is $1,000 and you have to pay $1,000 for deductible. You have to remember that you pay premiums in advance and you will have to pay deductibles only when you have an accident and you make a claim for it. When you have $1,000 deductibles you are unlikely to make claims for small damages anyway that will further save money due to low claim numbers in your records.