The law requires you to maintain a valid auto insurance policy. It does not require you to pay a small fortune for this coverage. If you feel like you have been overpaying for car insurance, the three tips outlined below could help.
Tip #1: Choose A Higher Deductible And Deposit Your Savings
While it is true that paying a higher deductible after being in an accident can be financially difficult for many people, there really is no need to choose between facing this financial burden or enjoying the low cost of high deductible policies. Simply purchase a policy with a higher deductible than you currently have. Deposit the amount you save on your premiums each month until you have saved up enough to cover the deductible. At this point, any additional savings you get will be yours to spend as you choose.
Tip #2: Sign Up For Your Provider's Safe Driver Program
Most insurance carriers now offer some version of a safe driver program. In most cases, participating in this program will require you to download an app to your phone. This app runs in the background when you are driving and records data on your braking and acceleration. This app will also record data regarding how far you drive and what time of day you are on the road. All of this information is used by the insurance company to determine how safe of a driver you are. The better you drive, the more money you will save on your policy. In most cases, you can expect to receive a discount just for agreeing to participate regardless of what data the app records.
Tip #3: Avoid Changing Insurance Companies Each Time Your Policy Expires
Many people change insurance companies on a regular basis in the hopes of scoring cheap car insurance. While it is a good idea to shop around from time to time in order to compare rates, you will want to avoid changing insurance companies each time your policy is set to renew. This is because many insurance providers offer access to additional discounts the longer you remain with their company. For instance, some insurance companies offer benefits such as reductions in your deductible, accident forgiveness, or loyalty rebates. If the rates at another company are not low enough to make up for losing these benefits, it really is not in your best interest to switch.
For more information, contact a company like Clover Insurance.