Car insurance is a basic requirement for car owners in the United States. While this may be the case, acquiring a comprehensive car insurance can be quite expensive for many Americans who continue to struggle with escalating prices of basic commodities and interest rates. In the recent years, car insurance premiums have increased at a rate of 1.05% per year, and do not show any signs of lowering any time soon.
The good news is that there are steps that car owners may take in order to save money amidst the escalating car insurance premium rates. Below are just some tips that would help car owners save money on their car insurance.
Increase Deductible Amount
One way how car owners would be able to save money on their car insurance is by raising the amount of their deductibles. This is the minimum amount that a car owner needs to remit to the car insurance provider in prior to filing a claim or reimbursement. This is very important to know when you start comparing low cost auto insurance quotes online with different companies. Increasing the amount of deductibles paid to the car insurance company would greatly reduce the premium payments that need to be paid for the coverage. The higher a car owner increases his or her deductibles, the higher the amount of the discount they would receive from the car insurance company on their premiums.
Car insurance companies provide a variety of discounts on the premiums on car insurance covering vehicles driven by young drivers. Young drivers who show proof that they have completed a defensive driving program are able to save anywhere between 5 and 10% from their premium payments. On top of that, some car insurance companies provide a 15% Good Grade discount to car owners who are currently in school and are able to maintain a Grade Point Average of at least 3.0.
Switch Insurance Policies in Advance
If a car owner decides to switch car insurance companies, the best time to do this is before their current car insurance policy expires. Car insurance companies offer up to 12% on their “early shopper” rates. This is based on the fact that insurance companies view car owners opting to purchase another car insurance policy before their current one expires to be more responsible car owners as opposed to those wait until the last minute.