How To Get The Cheapest Insurance


In-depth knowledge about insurance policies and how they work is important to rope in amazing financial benefits on your auto insurance policy. Car insurance is indeed expensive but given that it’s mandatory, you don’t really have a choice in deciding whether you want it or not. However, when it comes to getting cheaper premiums, you do have a choice!

If you’re not well-acquainted with the tricks and tips to get a rebate on your insurance policy, this guide is for you. Today, we are going to discuss 7 practical tips that will help you land the cheapest insurance policy.

If you are looking for quality insurance policies from reputable companies at an affordable rate then you should definitely learn more about Surex. Buying policies from reputable companies like the ones that Surex is partnered with will also ensure that your funds are in safe hands.

6 Tips To Get The Cheapest Insurance Policy

Several factors influence the cost of a premium. This includes your age, location, gender, etc. While you cannot do anything to change these permanent factors, the other factors can be improvised to help you qualify for cheaper premiums.

So, here is a list of the top 6 hacks that every car owner should know before getting auto insurance

1. Keeping High Credit Scores

High credit scores have countless benefits. It doesn’t just help you get low interest on your loan but also helps you land cheaper car insurance. When your credit score is high, it signifies that you pay your bills on time and manage your finances well. This helps your insurance company trust you more.

They believe that you will pay the premium on time. This is an important factor because it portrays you as a low-risk party. Since insurance premiums are all about evaluating the risk, your credit scores help you qualify for cheaper premiums.

2. Maintaining A Clean Driving Record

Every time you get into an accident, it will go on your driving record. Drivers who have a clean record naturally qualify for cheaper premiums. The reason behind this is that if you have a high number of accidents or traffic rule violations in your record, it indicates that you are a bad driver. It also shows that you follow dangerous driving patterns that can lead you to accidents frequently.

As the probability of you raising a claim increases, so does the risk taken by your insurance company. Hence, to compensate for the risk they are taking, they increase your premiums. Similarly, if you have a clean driving record, your insurance company will offer you cheaper premiums.

3. Get An Experienced Driver Added To The Policy

Insurance companies consider young drivers as high-risk parties. The reason is that the younger the driver, the less time they have spent on the road. This indicates that they do not have substantial driving experience and thereby have higher chances of getting into an accident. Although it might sound unfair, drivers in the age range 18 to 25 have to pay higher premiums.

To escape this unfair imposition, you can get an older and experienced driver from your family added to the policy. When you get another driver added to the list, it is automatically assumed that the driving hours will be divided between the two drivers. 

This will reduce the number of hours you spend as a young driver behind the wheel. It reduces the probability of an accident and you can qualify for a slight discount on your premiums.

4. The Model of Your Car Influences Your Premiums

We all know that the more costly a car is, the higher will be its coverage and premiums. But there are a few other factors that influence your premiums apart from the cost of your car.

These factors include:

  • The safety features of the car
  • The availability of spare parts for the car

Cars that have safety features like anti-lock brakes, traction control, and quality airbags reduce the chances and impact of an accident. These features directly have a relationship with the risk taken by your insurance provider. Therefore, you get a cheaper premium with additional safety features.

The availability of the spare parts of your car also plays a huge role. If the car’s parts have to be imported, it will add to the repair cost. This in turn will increase the premiums you shell out.

5. Increase The Deductible

The deductible is basically a pre-decided amount that you are required to pay before you can claim the coverage.

For example, suppose your car was damaged in an accident and it will take $3000 to repair it. If your deductible is $500, then once you pay the company $500, it will pay for the remaining $2500 to repair your car. Now, if your deductible were $1000, the insurance company would have to shell out $2000.

As you can see, the risk taken by the company decreases with increasing deductibles. Hence, you will qualify for a cheaper premium.

6. Pay For Smaller Accidents Yourself

Claiming for each and every accident might seem like a lucrative idea. After all, it’s your money. However, doing so can severely damage your records in the long run. Each time you raise a claim, it goes on the record. As the number of claims increases, it indicates that you are a high-risk party. As we have already discussed, higher-risk parties are required to shell out higher premiums.

Also, if you manage to go without raising a claim for a certain tenure depending on your company’s policy, you will qualify for no claim bonus. This bonus is designed to reward safe drivers for not raising a claim. Therefore, the next time you renew your policy, you will get a discount.

Final Thoughts

So these were the six common tips that will help you land a cheaper deal in no time. Comparing different policies by different insurance providers will also help you find the best policy at the best rate. However, it is also important that you do not entirely focus on the price–your safety should be your first priority. Therefore, you should only have a policy that offers all-around protection.

 

 

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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