Owning a car entails a lot of responsibilities. First, you need to pay it off. Second, you need the means to maintain it. And third, you need to insure it properly. Contrary to what many of us believe, auto insurance can be budget-friendly. So how do you fit it into your budget? Well, you must first be aware of the factors affecting your rates.
The car you are driving affects your auto insurance premiums. So before you buy one, you might as well check the rates for the models you are considering. Small SUVs, minivans, and other safe and moderately-priced cars are usually cheaper to insure than flashy cars.
Your credit scores also help determine your auto insurance premiums. Thus, consider improving them by following these tips:
Traffic Violations and Accidents
Two of the many factors that increase your premiums are traffic violations and accidents. Have you been issued a ticket? If yes then, you may be advised to go to a safety driving class to get dismissed from your violation or reduce your violation points reflected on your driving record. Thus, if you want to keep it off the record, you might as well spend time in class as it will save you a lot of money over the years.
If you don’t drive around a lot, you should consider getting usage-based insurance. This type of policy will give you rates based on how much and how well you drive. Your insurer may require you to install a device in your car that records data on your driving habits.
The Coverages You Get
If you have an old vehicle, it might be wiser if you drop collision and comprehensive insurance. Collision insurance covers the expenses for repairing the damages to your car when it collides with another object or vehicle or gets totaled. Comprehensive insurance, on the other hand, covers the expenses incurred when your car is stolen or damaged by certainly covered events.
If the value of your car is less than your deductible and the amount of your annual premium, then you need to drop both collision and comprehensive coverage. It is important to note that these two coverages never pay more than the value of your car. Ask yourself whether it’s wise to pay for insurance that will only reimburse you for a small amount.
If you decide to drop these coverages, then you must create a fund that would pay for repairs or for a down payment on a newer car in case the old one is deemed unusable.
Your deductibles can increase or reduce your premiums. Higher deductibles mean lower premiums, and lower deductibles mean higher premiums. Note that although you get lower premiums for high deductible, you will be spending more on out-of-pocket costs in case of a covered event. Thus, you should evaluate your financial capabilities first before deciding on whether you up your deductibles.
Insurance companies offer ways in which you can save on auto insurance. These are “discounts.” Even if your agent doesn’t mention them, it would be wise to ask if you’re entitled to one. Here are some of the ways you can get discounts:
Roper Insurance Services is an independent agency where you can shop for auto insurance policies that best suit your needs. We offer a combination of reliable services at the lowest reasonable price. Call us at (828) 388-1851 or email us by clicking here. Get a free auto insurance quote from us now!