So you finally get a chance to purchase your own ride. After countless months or years of saving up, you now have your own sleek car, complete with a flashy paint job and a classy interior. It’s all well and good, until you realize that the road isn’t always a safe place. You decide to avail of insurance for your car, just in case, but are surprised to find out that the very first establishment that you had gone to sells their car insurance at a steep price, so what do you do? Worry no more, as we had enumerated a few ways for you to lower your car insurance cost:
1. Visit more than one insurance outlet.
The thing about being a consumer is that you have the free will to choose whichever product or service that you would like to avail. This is of course not limited to car insurances. Take time to “canvass,” ask and shop around through various establishments. You would be surprised to find that others are willing to offer their insurance packages for a much lower price. As a consumer, never be afraid to ask for the cost, it’s your money on the line, after all.
2. Pre-purchase factor: A car’s price also affects insurance cost.
You’ve read that right. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft.
3. Never be too shy to ask for higher deductibles.
Deductibles are basically what you pay before your insurance policy comes into effect. By requesting higher deductibles, you can lower your insurance costs significantly. This is much like a domino effect, for example, increasing your deductible could reduce your collision and comprehensive coverage cost by a few percentages, enough to save you a noticeable amount. It’s important to note though that before you choose a higher deductible, be sure you have enough money set aside to pay if you have a claim.
4. Consider deducting coverage on an older model.
In this case, you may try dropping collision or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Make sure to coordinate with your auto dealers and banks so they may let you know of the car’s worth and the other underlying amounts.
5. Buy your homeowners and auto coverage from the same insurer.
Think of this as a package deal. Buying multiple coverages from the same insurer may bring about discounts on your purchase, as with the case of all bulk orders. Aside from this, it would also be much easier to process the coverages, owing to the fact that you had already provided the requirements, all in one go, compared to having to submit the same requirements twice when coordinating with two different insurers.
6. Maintain a good credit record.
Believe it or not, your credit history can also affect your insurance costs. Some insurers use credit information to price auto insurance policies. Recent studies had indicated that people who effectively manage their credit have fewer claims. You may ask, how may I best maintain a good credit record? Simple, you just have to pay your bills on time, avoid obtaining more credit than you need, and keeping your credit balances as low as possible.
7. Try out for low mileage discounts.
If you’re only going through a short travel every day, then why not apply for this type of discount? Basically, some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work. This is most appropriate for those who drive just a few blocks towards work every day.
With all of these in mind, you are definitely ready to avail of your very own car insurance; however, you’re not sure where to purchase one. At Cebuana Lhuillier, we offer the AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.