There is no denying the fact that car insurance is inevitable in most parts of the world. As the cost of a vehicle increases, insurance rates are likely to go high, thereby weighing heavily on your budget. While it is apparent that we have no control over the escalating prices of cars, we can certainly cut down car insurance rates by considering the following tips.
Car choice
Though owning a sports car may be your ultimate dream you need to consider if it is worth your while. More often than not, luxurious cars have a knack for attracting troubles which make them possible targets for car thefts. Also, repair and maintenance of these cars can be extremely expensive as their spare parts are not easily available. The insurance companies also perceive sports cars to pose more safety threats and be more prone to accidents. Therefore, it is in your best interest to purchase an inconspicuous standard car to avoid any hefty insurance costs.
Shop around
It is always advised to shop around for your car insurance policy. You need to make the most of this chance to explore all available options before making a decision. Make sure you compare the rates of few insurance policies so as to choose the one that best caters to your needs. Some insurers offer discounts for long-time customers, drivers with clean records and senior citizens, so make sure to avail these benefits. You can also inquire your insurance agent about any additional discounts offered to military personnel, students or employees of specific firms.
Higher Deductible
When you are opting for a car insurance policy you have to pick a deductible amount which you will be required to pay in case of an accident. It is wise to select a higher deductible to get a lower annual premium. For instance, in the UAE the deductible amount ranges between AED500 to AED2000 and selecting the higher deductible amount will get you the cheapest car insurance.
Drive responsibly to cut down car insurance rates
The easiest way to avoid high insurance premiums is to steer clear of any road trouble since more number of traffic violations or accidents are going to badly affect your driving record. It also means that you should be careful while parking your car in any unsafe locations with huge risk of theft, as it is likely to add 3%-5% to your insurance costs. Avoid other offences while driving, such as, talking on the phone, not wearing a seatbelt etc. to keep the insurance rate to a bare minimum. Always strive to improve your credit rating as a record of involvement in collisions and reckless driving is less likely to help you strike a good deal with the insurance company.
Safety Options
While all new vehicles come equipped with latest safety features such as air bags and anti-lock brakes, insurers take into account other safety devices like alarm systems and anti-theft mechanisms while determining your insurance premiums. A car installed with a tracker and anti-theft devices will obtain a favourable response from the insurance companies and is more likely to be charged with a low insurance premium.
Mileage
Car insurers also take into consideration how frequently you use your vehicle, which means your car mileage also affects the rates. The less frequently you drive your car the less costly will be your insurance policy. Consider using mass transit or even carpooling to decrease your mileage and do away with any unnecessary additional insurance costs.
While car insurance cannot be completely avoided, there are numerous ways to reduce the high insurance premiums and save you some money. Following these tips is a sure way to help you cut down car insurance rates and get the best car insurance deal at your own terms.