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Surefire Ways to Reduce Your Auto Insurance Costs

Category: Finance

Insurance is one of the incidental expenses attached to car ownership in Utah. It’s bad enough that a motor vehicle costs nearly as much as some houses, loses great value yearly, and requires regular maintenance, and then you have to insure it in case the worst happens.

Fortunately, you can lower your insurance premium if you’re shrewd about your decisions. Here are the most effective ways to insure your car at a lower price:

Choose a “Safe” Old Car

The beauty of applying for a used car loan in Ogden, Provo, and Salt Lake City is that it can increase your chances of paying for less insurance. Vehicle age is one of the factors, albeit less impactful, that influences the price of auto insurance.

Whether you buy a relatively new or extremely old vehicle, paying attention to the overall safety record of your prospective used car is critical. Naturally, an insurer will be more willing to charge a smaller premium if the vehicle in question is less likely to break down.

Furthermore, be particular with a used vehicle’s make and model. These two pieces of information alone help define a car’s likelihood of getting stolen. Older vehicles tend to be favorite targets of theft because they have less advanced security features. Also, vehicles manufactured decades ago have parts that are sought-after in repair shops. A good rule of thumb is to buy a used but relatively new car designed with smart security components.

Increase Your Deductible

Auto crashed

Boosting your deductible, the amount that you’ll pay yourself before your policy comes into effect, is a surefire means to reduce your auto insurance premium. Although you’ll spend more out-of-pocket money when restoring your car after a collision, you’ll be rewarded with lower insurance costs. If you never had to use your insurance, you’ll end up saving a substantial amount of cash with this gamble.

Say No to Unnecessary Coverages

Insurance is all about preparing for the unknown, but be mindful if you really need all of the coverages you’d get. An insurer can offer you add-ons that will surely drive a premium up. If you don’t see any value in such upgrades, don’t hesitate to decline.

Seek Out Discounts

Insurance premiums may appear to be set in stone, but they’re all negotiable; all you need is to do is ask. If you have good credentials, an insurer may be willing to give you discounts for being a low-risk customer.

For instance, you can snag a low-mileage discount if you drive fewer miles per year than average motorists do. If you’ve never had any accidents or violated traffic rules for many years, you can also qualify for extra premium reductions. You can even invest in yourself by attending a defensive driving course in order be perceived as a “safe” policyholder.

If your credit is good, you can also get insurance at a discount. Research reveals that creditworthy individuals tend to file fewer claims.

Overall, you have to think like an insurer to understand one’s decision-making process. If you succeed in doing this, you can get auto-insurance-shopping down to a fine art.