Living in the US you cannot escape from getting your car insured and paying your premiums regularly. Car insurance can consume a great proportion of your monthly car expense budget. However , there are many ways to cut this cost as much as you can. Following are 5 tips to cut down on your texas car insurance rates.
Do extensive shopping: –
One of the biggest mistakes that people make is being hasty in purchasing auto insurance policy. This is simply not advisable, especially when you have lots of options available to buy an insurance policy from. You must get auto insurance quotes from three to five companies. You can get these quotes from the internet through the firm’s website, from state insurance department or calling the insurance agents who are the middlemen between you and the insurance provider. Through shopping you must not only be concerned about the rate you get, but also the kind of service the company provides.
Level of deductibles: –
The deductible is the amount of money you have to pay when you get involved in an accident. Before the company settles your claim, you have to pay deductibles to be able to receive your claim. Normally the higher the claim, the lower your monthly premium. So it is better to opt for higher deductible so that you can lower your monthly premium rate. Having said that, it is always better to set aside that amount of deductible in your bank account so that when you get involved in an accident, you don’t face difficulty in arranging that big amount of a deductible.
Good credit history: –
Credit history involves factors like paying bills on time, applying for only as such of credit as much is required and maintaining a low credit balance. These factors impact your credit standing. According to a study, people who manage their credit effectively have fewer claims. Such people are always preferred by the insurance companies who are safe customers. They are likely to be charged lower premiums. So this is also one of the 5 tips to cut down on your car insurance costs.
Look out for discounts: –
Select an insurance company that offers discounts and reward programs. Many companies give discounts for a number of reasons like safe driving, taking up a defensive driving course, installing safety gadgets in your car. Apart from this installing anti-theft devices and alarms, showing better student performance, low annual mileage and demonstration of customer loyalty with the insurance company quotes online can also earn you discounts. Having no traffic law violations such as obtaining a speeding ticket or no accident for about three years can also improve your rating and earn you discounts.
Buy home and car insurance from the same company: –
There are many good, reputable companies that provide both home and auto insurance. Obtaining insurance from such a company can help you save a lot of cost as they provide discounts on the bundle of insurance services that they provide.
These were 5 tips to cut down on your car insurance costs.