68 percent of Australians say they are either very concerned or quite concerned about auto insurance costs, but many don’t know what they can do to bring these expenses down. Luckily, there are simple ways to manage car insurance prices for your household. Here are a few tips to get you started.
A surprising number of people can’t recall the last time they got a quote from an auto insurance company other than the one they use today. But shopping around for the best price can save you a lot over time.
Begin by reviewing your current coverage and determine if it matches your needs. Then, create a list based on that information to help you gather accurate quotes. Contact a few providers in the area and see what they would charge for the service you require and compare the information.
Typically, getting a quote is free, and you’re under no commitment to buy, so don’t hesitate to look at numerous options before making a selection.
Consider Bundling Your Policies
Often, insurers will discount the total cost of your insurance when you bundle multiple policies. This can include having more than one vehicle with a single company or combining your home and auto insurance with one provider.
The amount of the discount can vary from one insurance company to the next, but almost all of them will have an incentive for bundling. When you gather your quotes, feel free to ask about discounts for having multiple policies and factor that information into your final decision.
Adjust Your Deductible
In most cases, you can choose from multiple deductible options for your car insurance, and selecting a higher one can save you money on your monthly premiums. You can contact your insurance company to see what options are available and determine the amount of savings you can experience by making a change.
It is important to note that adjusting your deductible does come with some risk. If there is an accident, you could be responsible for paying that amount before repairs can be made. That means it is incredibly important that you have the full amount of your deductible set aside in an emergency fund at all times. This ensures you can pay the cost should the worst happen and you don’t have to be worried about being without a car just because you can’t pay.
Ask About Discounts
Different insurance companies may offer discounts that aren’t widely advertised. Some reward families with good students with lower rates as well as those with good credit or who have been with the company for a long time.
If you haven’t investigated the available discounts recently, consider calling your insurer and seeing what may be available. Often, they won’t add these cost reducers unless you explicitly ask, so making a single phone call has the potential to save you a lot of money over the long-term.
Stat source – Choice consumer pulse: Australians’ attitudes to cost of living 2014-2017