Tips to Reduce Car Insurance Premiums

Car insurance is one of the important yet expensive part of purchasing a car and sometimes you even have to pay more for insurance compared to the price of the car itself. The car insurance premiums are increasing day by day that is discouraging many new drivers from owning a car. Well, this is not as horrible as it seems because there are certain effective ways with which you can easily reduce your car insurance premiums.

Following are some effective tips for smart consumers who are searching for low car insurance rates.

• Before choosing an insurance company it is important to get quotes from different companies to make comparison between them to get better deals. The internet made it easy for you as lots of big insurance companies have switched to the internet. Compare their rates, reputation and the services they are offering to their customers. 

• The type of your car is another big factor that affects the insurance premium. For an expensive luxury car or a sports car you have to get higher insurance premiums whereas study cars usually come with moderate to lower insurance rates.

• There are many companies that are offering notable discounts if you insure your home and vehicle with them. This is a good approach that allows the car owner to insure the vehicle with the company who is already providing good coverage for their home and property. Keep in mind not all companies are offering such discounts and some companies offer discounts over time depending on the relation with customers.

• Car insurance premiums greatly vary from place to place so you can opt for certain locations known for lower insurance premiums. This is because certain areas have low theft risks, accident risks etc.

• Having a private transportation doesn’t mean to avoid taking public transportation and if you do so you will multiply your car insurance premiums. Try to reduce your miles driven per year as it will significantly reduce your insurance rates. Opt for public transport occasionally to cut the miles.

• The change in your driving habits can also reduce the insurance rate. If you are driving your car at high speed in a harsh manner it will increase the risks of accidents or damages to the car that automatically boost up your insurance premiums up to 50 percent or in some cases doubles the amount. This is the reason that the car insurance premiums of teens are high as compared to the mature drivers. Try to drive safely and stay within the speed limit.

• Cars that are backed by long manufacturer warranty usually get low insurance rates because the car owner can eliminate the parts that are secured by manufacturer from the list of car insurance premiums.

• Never get an insurance policy that insures your car on the basis of miles you will drive. This is only good if you are an experienced driver and can estimate miles accurately that you will drive in the future otherwise it can cost you extra for miles that you can’t drive.