Car insurance costs have been rising steadily for the last couple of years despite the recession everyone’s talking about. The unfavorable economic conditions didn’t affect the constant increase in repair and medical costs that are the primary factors affecting car insurance costs for the insurers. So there’s no surprise that a lot of people are eager to find ways as how to reduce their car insurance costs. The following are simple yet effective measures you can take to reduce your car insurance costs if it’s crucial for you:
Consider buying a cheaper car
The first and most radical solution for optimizing car insurance costs is changing your car. Each car make and model gets different insurance rates because they have different repair costs, theft rates, accident risks and other variables. It also depends on the type of car you’re driving, so don’t be surprised that your sports monster gives you expensive rates. If you really want to get cheap car insurance start with your car and get a vehicle that is cheap to insure in the first place instead of trying to find an affordable policy for a car that’s always expensive to insure.
Comparison shopping is always smart no matter what you’re looking forward to buy. Yet with car insurance it’s even more crucial to shop around because of the peculiarities of car insurance in general. The main idea is that each company uses its own methods to calculating rates they will charge you with based on different factors and their statistics. That’s why when quoting different companies for the same type of policy with the same coverage amounts included for the same car you will always get different quotes. The difference may be slight or it may be substantial, that’s why it is so important to shop around when buying car insurance – you can always get a policy that is more affordable than the rest.
Discounts are available with most insurance companies even if they don’t advertize them as widely as you would expect. So it never hurts to ask about discounts, especially if you know that you can get one. Ask if you can apply for such popular discounts as low mileage, multiple car or multiple policy discount. Keep in mind that the amount of discount will vary across different companies so you’ll have to shop around really good in order to get the best discount possible.