Are you tired of paying a small fortune each month just for car insurance? If so, you should know that the tips outlined below can help you to significantly lower the cost of your monthly premiums.
Perform Your Own Risk Assessment
When you call an auto insurance company to request a quote, the insurance company will perform a risk assessment before providing you with that quote. This risk assessment considers things such as your driving history, the make and model of your vehicle, and the area in which you live. By taking the time to consider all of these factors, the insurance company is able to determine how likely you are to file a claim against the policy and will adjust their rates based on this risk.
By taking the time to perform your own risk assessment, you too can identify the people, places, and things that put you at a higher risk of filing an insurance claim. Once you know what these risks are, you will be able to take steps to minimize them. For instance, if you got a speeding ticket a few months ago, choosing to take a defensive driving course to refresh your safe driving skills can help to minimize the risk that you will repeat this action and ultimately cause an accident.
As a reward for your proactive approach to the problem, your insurance company will typically provide you with a discount on your auto insurance policy. This same type of discount is given for other actions that reduce your risk of filing an accident claim, such as installing a theft deterrent or vehicle tracking system.
Review Your Insurance Needs
The insurance needs of most drivers will change several times throughout their lifetime. Unfortunately, many drivers overlook the need to reevaluate their insurance needs and may, therefore, find themselves paying for coverage they don’t truly need or failing to get the coverage they do need.
When reviewing your insurance needs, take a moment to ask yourself these questions.
Could you cover the cost of any damage that insurance doesn’t cover?
Do you currently have any liens against your vehicle?
Is your vehicle at a high risk of being vandalized or stolen?
Could you purchase a new vehicle without the help of an insurance payout?
Do you often travel long distances or transport a large number of people?
These questions are important because they will help you to assess your risk of filing for an accident, your ability to financially recover from an accident, and the likelihood that other people will be relying on your insurance coverage to pay their accident related costs. Once you have this information in hand, you will be able to select a policy that provides all of the coverage you need without forcing you to pay for any coverage that you don’t need.