The amount you pay for buying the car is not enough. You need to pay extra for the car insurance also. Many people forget to include this on their car budget and later find it difficult to maintain or pay the car insurance. It is true that the car insurance can be high, but there are ways you can lower the car insurance. Here are some tips for you.
Go for a defensive driving course
Having a speeding ticket or causing any minor violation of traffic rules can increase your auto insurance premium. A point system is used to keep track of the number of violations you have made. The more violations you cause, your points start to increase. So, your premium will depend on the number of points you have. If you take an optional driving course then you may get a reduction in some points and save money on your insurance.
Improve your credit score
If you have a bad credit score, it may affect your premiums. The insurance companies will use your credit score to find out whether your behavior is risky or not. If you have lots of credit issues then you will get high auto insurance premiums.
Go for the liability coverage if the car is old
If the car is in the condition of getting replaced, then you get only liability coverage and don’t include the collision coverage. As a rule of thumb, if the cash and trade-in value is about $1,000 then just go for the liability coverage. Otherwise, you will be throwing out your money for nothing.
Buy a car that has less chance of an accident
You should buy a car that has less chance of having an accident. The color of the car is an important factor in this case. For example, a red Mustang has a higher chance of having an accident than a silver-colored Honda. This is because red is an aggressive color that is often linked to aggressive drivers.
Pay premium once every year
Instead of paying your premium every month, you can save a lot of money by paying the entire amount once every year. So, save up the money in a separate account and then pay off at once.
Look out for a combination insurance
You should get a combination package, like get your car and house both covered. This will be less expensive than if you take them individually. You can save a lot of money this way.
You should maintain a good insurance history. If you have any gap in your insurance coverage or cancel your insurance policy, then it can affect your premiums. So, make sure that you have a good insurance history to qualify for a low premium.
If you can get a low insurance premium, you will be able to save a considerable amount of money every month. So, try to lower your auto insurance premium and save some money every month.