One of the primary reasons that individuals tend to ignore reviewing their California car insurance once every year or whenever it comes up for renewal is the fact that finding a cheaper insurer is not always that easy to do. The downside is that not reviewing your policy could be costing you hundreds of dollars every year. Believe it or not, the price of premium is not fixed and there are ways you can lower the cost of your auto insurance.
5 Steps to Saving on Your Insurance Premiums
Naturally, the first step is to compare different companies, but there is more to the equation than just doing some premium rate comparisons. If you are in between renewal dates and you cancel your current insurance in order to go with a different company, there could be penalties involved. So you may have to wait before making a change. Whenever this is the case, there are certain things you can do in the meantime that could make a difference.
Consider your vehicle’s safety features and security devices – many newer vehicles have these features and devices. For instance, air-bags, anti-lock brakes, and back-up cameras are all considered safety features while anti-theft and engine cutoff or ignition kill switches are categorized as security devices. Older vehicles will not have most of these, so if you are in the market for a new vehicle (or a newer used model), make sure they have these features and devices before making your purchase.
Enroll in a defensive driving class – there are a number of California car insurance companies that will give you a discount on your rates for completing a defensive driving course. Just make sure that it is an accredited institution before enrolling in the course. These courses are normally required as a high school curriculum, but they are not intended for teenagers only. People of all ages can benefit from taking a defensive driving class.
Leave your vehicle in the garage once in a while – the amount of driving that you do can impact the cost of your insurance premiums negatively or positively. Consider driving less by carpooling or using public transportation to lower the amount of mileage that you put on your vehicle. When you think about it, this is a win-win situation in that you will not only save money on your California car insurance premiums, you will also be extending the lifespan of your vehicle.
Raise your deductible – according to the Insurance Information Institute, increasing this amount is probably the best place to start when you are trying to decrease the cost of your California car insurance premiums. Although this will reduce what you pay out-of-pocket, it is somewhat of a gamble because you will have to pay more in the event of a car accident before your insurance company will pay for the balance of the repair costs. You can offset that expense by putting away the money you save on your insurance.
Talk to your insurance company about tracking devices – a number of California car insurance companies now offer a small wireless device that you can attach to your vehicle for monitoring your driving habits. These typically gauge the distance you travel, the frequency of your travel times, and your driving habits, including speeding and sudden stopping. According to a number of drivers that used the tracking devices offered by one company, some saved as much as 60%. Just remember that poor driving habits recorded by the device could result in an increase in your rates.
Additional Considerations
In addition to the above, there are other things to consider where lowering your auto insurance rates are concerned. For instance, your current company may offer you a discount for combining other insurance policies with your auto insurance such as your homeowner’s and life insurance policies. This most likely applies to the major carriers as companies like Allstate, Farmer’s, and State Farm all offer auto, home, and life insurance. Finally, monitor your credit score. Most insurance companies view individuals with a good credit history as a much better risk than those individuals whose histories are unstable because they tend to have fewer claims.
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