So you have a car. The next thing to do is to have it insured so you won’t pay huge amount of costs for any accident you might have. Most people spend thousands of pesos a year on car insurance. You can slash your insurance costs by as much as 50% by paying attention to the things that influence your insurance premiums.
Follow these tips on how you can save more on your car insurance and start saving more money today.
Get more than one quote. Rates can vary a great deal between insurance companies, so get quotes from several car insurance companies. Talk to friends, relatives, colleagues, and acquaintances for any recommendations. Take into consideration the financial stability of the company, how well it takes care of its customers, and how fairly and efficiently it settles claims.
Some companies have insurance agents that provide exclusive representation, some work through independent agents, and others sell directly over the phone or on the Internet. Make sure you’re comfortable with this arrangement.
Ask for special discounts. These vary in different locations and with different insurance companies. Ask your insurance agent or customer service representative if they have discounts for:
– Insuring more than one car or combining your auto and home owner’s insurance policies.
– Being a long time customer
– Anti-theft devices and safety equipment, like airbags or anti-lock devices
– Mature drivers, good students, or college students away from home
– Driving fewer miles
Raise your deductible. Try to negotiate with your insurance company. If you’re willing to pay, say, the first P25,000 of collision or comprehensive losses instead of just P10,000, for instance, you could save 15 to 30 percent of the premium. If you can afford more, ask about a P50,000 deductible.
Even better, think about dropping physical damage coverage altogether on older vehicles. It may not worth it to insure cars worth less than 10 times the cost of the coverage. Figure how much you’d get on a claim, minus the deductible, and compare it to the amount of the premiums.
Of course, if you have a loan on the car, the bank may require a certain amount of coverage. Review your coverage at renewal time to see if you want to make any changes.
Maintain good credit. Insurance companies find that drivers with long, stable credit histories have fewer accidents. That means a favorable credit report can almost guarantee you’ll get better rates.
Buy the right car. Insurance companies charge more to insure cars that cost more to repair, offer less protection or cause more damage in accidents, or are more likely to be stolen such as luxury cars. When shopping for a new or used car, check to see what the insurance rates are before you buy and avoid an expensive surprise.
Be a safe driver. Above all, don’t forget to be always a safe driver. Don’t get traffic tickets and avoid accidents, and you’ll receive better insurance rates. Sometimes a defensive driving class will count.