1. Pay high deductible: it may not suit all drivers, but the fact is that it is one of the easiest ways to reduce your monthly premium bill. In general, deductible is the amount of money you have to pay out as addition to the coverage limit following an approved claim. The coverage limit is covered by insurance company. If your coverage limit is $ 1000 and your deductible is $ 500, you will pay lower premium rate compared to those who only have $ 100 deductible.
2. Do not buy what you do not really need: this is the basic rule, since insurance company often offers certain packages that rarely include useful coverage such as towing and car rental. The coverage for towing comes into use only when your car is having a breakdown. The likelihood of a breakdown is greatly reduced if you have your car regularly maintained by a mechanic. Regular maintenance is not only something to avoid paying coverage for towing, but it is indeed what people do to their cars regardless of what coverage policies they purchase.
3. Buy a safe car: Buy a safe car: if you are currently in the market for a car, choose wisely since you have to purchase insurance afterwards. People simply think that big vehicles such as SUVs or off-road cars are more expensive to insure. The idea behind this is that big cars make more damages in an accident. On the other hand, insurance companies also measure the probability of you being injured, and the car being damaged. Big SUVs and off-road cars are in most cases stronger and sturdier than a small family car. It is possible that in the event of an accident a hatchback costs more money to repair than an SUV does.
4. After-market: it is good to purchase a car that has good after-market value. If the car is stolen or totaled, insurer will only cover the price of the car as after-market merchandise instead of a new one. Also, it is good to get car service history as proof that your vehicle is in a good condition before it is totaled.
5. Bundled coverage: if you have two or more cars, you can purchase a bundled package which often gives more discounts. Bundled-package means you have all your cars insured by the same company.
6. More discounts: always ask the company about all available discounts and how you can qualify for them. Some of the most common discounts include low-mileage, clean driving record, and driving course. If you spend only a few hours on the road, you are probably eligible to get low-mileage discount. Spending less time on the road means you have very little likelihood of being involved in an accident. Most insurers also give discounts for those who maintain clean driving records. It is, therefore, good to be a safe driver, obey the road signs and traffic regulations to avoid tickets. Insurance companies like safe drivers since they pay the premium, but they have a low risk of accidents; it pays to be a safe driver and take safety-driving course before applying for insurance.
7. Avoid paying monthly: the initial insurance estimate of the premium fee is in most cases determined based on the assumption that you pay annually. However, you can choose to pay every six months or even monthly if you want. Please put in mind that the company will charge additional cost for that. If you have to pay monthly due to any reason, please use automatic payment scheme since the company will only send the premium bill in case there are changes in price or any related matter.