The monthly auto insurance bill can be a headache, especially when a consumer has more than three big bills to pay each month. The good news is that a consumer can use several strategies to cut the bill down as much as possible. Several circumstances and consumer decisions can change the outcome of a monthly insurance premium. The following are some tips on cutting the cost of the bill. Drivers and policyholders can try these tips today:
Go Through a Broker
A consumer can get the best deal on auto insurance if he or she goes through a broker. A broker is not partial to any single insurance provider. A broker’s job is to connect a driver to the best auto insurance option available. Therefore, the broker will search for the cheapest insurance if the cost is the most important factor to the consumer. Another benefit of letting a broker handle the search is that the broker can help the consumer to obtain all the discounts.
Buy a Car Outright
Buying a used car outright is better than buying a newly financed vehicle is in terms of auto insurance. Many finance companies require their customers to obtain full coverage insurance for the duration of the loan agreement. Full coverage insurance is quite expensive. A person who owns and an older vehicle may only have to pay for liability coverage. It would be in the consumer’s best interest to find a reliable used vehicle that has a low price tag.
Choose a Vehicle With Many Safety Features
Insurance companies give policyholders special discounts for purchasing vehicles with safety features. Drivers can get discounts for alarm systems, airbags, anti-lock brakes and more. The insurance premium can lessen with each safety feature.
Some insurance companies such as Geico offer generous discounts to their customers who drive safely for a certain amount of time. One of the best ways a consumer can cut down a premium is to obey the traffic rules and avoid accidents.
Increase the Deductible
Finally, a consumer can decrease the monthly premium by increasing the deductible. The deductible is the amount of the money the driver has to invest before the insurance company covers any part of an accident. A frugal driver can adjust the deductible, which will adjust the premium. The person can change the information back at a later date.