4 Possible Ways to Enjoy Cheaper Car Insurance
Posted on: 21 May 2021
If you have been paying attention to advertisements from car insurance companies, you probably know that competition for new customers is fierce within this segment of the insurance industry. While many have similar coverage types and policies, each auto insurance company typically offers some type of premium discount that can help policyholders enjoy cheaper car insurance rates.
1. Theft Risk
When an insured vehicle is stolen, whether for resale as a whole or parts, insurance companies are financially responsible, depending on the actual coverage limits of the policy. Because of this, insurance providers routinely charge significantly higher premiums for vehicles that are known to be at an increased risk of theft.
Insurance customers who actively want to find cheap car insurance should consider choosing their next model from those that are known to be popular with car thieves. Most insurance companies maintain a current list of car models known to be at higher-than-average risk of theft and are happy to share that information with current and future customers.
2. Vehicle Age
In addition to model, vehicle age can also be a determining factor in the cost of insuring it. If your current vehicle or vehicles are relatively new in age, taking steps to replace each one with an older, but still reliable model can provide instant savings on total car insurance costs.
3. Coverage Amounts
Vehicle owners who currently own older vehicle or plan to soon replace their newer models with older ones may also want to consider making major insurance policy changes for one or more of the household vehicles. Older cars that have lost much of their value due to depreciation and age can be good candidates for liability coverage.
Although liability coverage does not include replacement costs and other benefits, it can provide adequate car insurance coverage in situations where the cost of replacing it is small, should it be involved in a traffic accident. Liability coverage is not, however, typically available for financed vehicles and may not be suitable in every situation. Vehicle owners interested in switching from full coverage to liability only should discuss their situation with their insurance provider before making a final decision.
4. Cost Reduction Options
Vehicle owners can also take some steps to reduce their auto insurance premium costs. Some of these steps include:
- voluntarily taking driver education classes, including basic skills and defensive driving
- installing monitoring devices to provide insurance companies with important driving data
- providing covered parking to protect vehicles from storms and vandalism
To learn even more ways to enjoy cheaper auto insurance rates, take time to meet with an auto insurance expert in your area.
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