5 Ways to Cut Costs
Before buying car insurance, it’s important to know what factors contribute to the cost. Generally, car insurance premiums are determined by the price of your car, the car’s safety record, the likely cost of repairs, and the risk of theft. (Some vehicle models are more popular to steal than others.)
Keeping these things in mind, there are also ways to save on your car insurance. Here are just a few examples:
- Shop and compare.
Don’t accept the first price you’re told. It’s always a good idea to get at least three different quotes from car insurance companies. Either shop around yourself or work with a trusted company that will shop for you and compare costs to get you the best deal. Through this research, you should also find out what you can about the insurance company’s record. Now you can go online and find out how many complaints a company has had. Check the company’s financial stability and overall reputation. You can check this information in consumer magazines and websites, or go to the website for Standard and Poor’s: www.standardandpoors.com/ratings . In some instances, you may pay a little more for working with a more reputable company. Price alone shouldn’t be the only consideration when choosing a car insurance company.
- Review your policy before you renew.
Many people simply go ahead and renew without thinking, especially if they’ve been with the same insurance carrier for a long time. But make sure your circumstances haven’t changed in ways that could significantly reduce your costs! For example, do you now work from home? Or do you have a different job with a shorter commute? This can affect your insurance costs. And did you know that what you do for a career can impact your car insurance costs? For instance, if you are in a profession where you’re likely to be on the road a lot, insurance companies will consider you a higher risk than someone who is not. If your job requires you to drive around, making sales calls and other tasks, you’ll be considered a higher risk client.
- Maintain a good driving record.
It’s that simple. Safe drivers equal better car insurance costs. If you haven’t been in an accident in the past several years, you are considered less risky and less likely to have an accident in the future. Of course, accidents do happen from time to time. If that is the case, and the accident you had was your fault, remember that it shouldn’t impact your record after three to five years. In addition, a strong credit rating will also help to ensure lower car insurance rates. If you pay your bills on time, you will be looked upon more favorably than someone who doesn’t.
- Consider raising your deductible.
A deductible is what you’ll pay out of pocket before your insurance coverage takes over. If you have a higher deductible, it will lower your costs significantly. For instance, raising your deductible from $200 to $1,000 could give you a savings of 40 percent or higher! But before doing something like this, just be sure you have enough money to pay the deductible in case an accident should happen.
- Bundle your insurance.
People who use the same company for home and auto insurance often enjoy better rates. This happens because it’s good for business all around. Customers may get special loyalty incentives for using the same company for all of their insurance needs. If you’ve thoroughly researched a company and feel that this is the right way to go for you, it could be a win-win.
At Zawada Insurance Agency, we’ll help you shop around to find the best deals on car, home, and other types of insurance—including bundling, if it helps you to save more.
Please contact Zawada Insurance Agency for details.
Zawada Insurance Agency, Inc. is a family-owned and operated independent insurance agency, located in Worcester, Massachusetts, serving central Massachusetts and beyond.