6 tips to reduce your car insurance cost

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By: NathanielCopeland
on 25th Aug,2012

There are ways through which you can reduce the cost of insuring your vehicle. All you need is a little forethought and some ingenuity.
6 tips to reduce your car insurance cost

Insurance was never a cheap affair but the alternative of losing your most prized possessions like your home or your car to some accident or natural disaster is a costlier loss. Right from the onset of 2011, the insurance market started hardening up, which means that the cost of insurance is not going to go down any time soon. Moreover, the fact that carrying car insurance is mandated by law makes the task of insuring your vehicle inescapable, even if it is for financial reasons.

The hardening market, the rising prices and the legal requirement of having your vehicle insured does not always mean that you will need to spend a small fortune. There are ways through which you can reduce the cost of insuring your vehicle. All you need is a little forethought and some ingenuity.

    Keeping your driving history clean of any traffic infractions or moving violations is the key for lowering your insurance cost. You could end up paying up to 78 percent more in case you have more than 2 violations on your record. These violations do not need to be anything major like a DUI or a DWI. It can stem from something as simple as a parking or speeding ticket. Insurers always prefer to offer lower rates to drivers with spotless driving records.

    Choosing the right car also has a lot to do with what you will end up paying as your monthly insurance premium. There is no definite guide as to which car you should choose if you want to cut your insurance costs. On the other hand, common sense dictates that moderately priced commuter cars with built in safety features like ABS, parking sensors and multiple airbags attract lower premium rates.

    Instead of driving to work every day, taking the bus or any other form of public transport will have a favorable impact on your premium rate. The more you drive, the greater the chances of you running into a risky situation like an accident and therefore the bigger amount you pay as your premium. Reducing your car's mileage will also help lower your insurance cost.

    Take up a defensive driving course or attend traffic school voluntarily. Most insurance companies are known to favor drivers who have had some extra training behind the wheels. Moreover, attending traffic school will also shave some negative points off your driving record. You will need to ask your insurer or your agent if such a discount is available before you decide to sign up for a class.

    Insuring more than one car through the same insurer or covering your home and your vehicle under the same policy will also tend to lower your insurance expenditure. Single vehicles usually attract a higher quote than what you might expect for a policy covering multiple drivers or cars.

    Install anti theft devices in your car like alarms and LoJacks. Consult your insurance agent and find out which devices would attract the largest discounts. You could easily shave off 10 to 15 percent of your yearly insurance cost by installing such protection measures in your car.

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