Convenient Ways to Save on Your Car Insurance

Most Virginia drivers carry car insurance due to the exceptional amount of protection it can provide against many hazards that might exist on any roadway. By having coverage, you can reduce your out-of-pocket burden for damages, injuries and other losses that might occur in wrecks or a variety of other hazards. a close up of a car

However, car insurance is not free, and you will have to pay a premium on your plan to be able to reap the greater benefit of saving money on your accident costs. Since this is a cost you will have to factor into your family’s budget, then it is only natural that you will want to keep your policy affordable.

Though you might have little control over certain pricing factors, in other cases you can take practical steps to keep your premiums manageable. Consider a few of the ways to do so.

How Insurers Determine Car Insurance Rates

The price of your car insurance premium comes down to your risk rating. This is a value calculated by insurers that shows them how likely you are to make a claim on your policy. Though all insurers figure out risk ratings differently, some of the factors that might influence your price include:

The value of your vehicle
The coverage limits and deductibles you include on your policy
Where you live
Your credit scores

Your driving record and accident history
How many insurance claims you have made on other policies
Your loyalty to a particular insurance company

The higher your risk rating, the more your insurer will view you as a risky customer and the more you might have to pay. The more claims you file, the more you are going to cost them. Therefore, they might have to charge you more to cover you.

Still, there are a multitude of simple ways that you might be able to save on your rates. Insurers offer many savings opportunities, and by tapping into these, you might be able to reap the benefits. Just a few ways to save include:

Asking Your Insurance Agent to Compare Rates

All insurance policies vary, and even though to companies might offer the similar coverage, that does not mean you will pay the same price for both. Again, different insurers measure risks differently, so just because you might be a higher risk to one, you might not be a higher risk to the other.

Therefore, ask your agent to compare the different policy options they offer to help you find the one that offers you the best combination of both coverage and price.

If you work with an independent insurance agency like ours, then you will find you have a much better chance of saving on your rates. We offer policies from many carriers, which means we can compare similar policies from a variety of insurers. Therefore, we will be able to offer you more choices of policies and find the one that is best for you.

Reviewing The Coverage You Already Have

If you have had the same auto policy for several years, then the coverage you bought initially might not be the coverage you need today. Sometimes, you might wind up paying for coverage you no longer realistically need, which is a waste of money.

One place to start reviewing your policy is at your physical damage insurance. You might carry collision insurance to pay for wreck damage, and comprehensive coverage to pay for damage from other hazards, such as fires, theft or vandalism. If you financed your car when you bought it, then your lender might require you to carry it.

However, over time your car will depreciate, and you will also pay off its financing. Therefore, as the vehicle ages, the settlement you might receive for physical damage might drop until it becomes negligible. Therefore, if you reach a point where you want to drop your physical damage insurance, then you might be able to save significantly on your rates. Still, you should only drop your physical damage insurance with caution and on the advice of your agent.

Increasing Your Deductibles

The deductible you have on your policy will be your responsibility to pay before you insurance pays for remaining damage costs. So, if you have a $1,000 collision deductible, then you must pay the first $1,000 of your collision repair costs yourself. On the other hand, a $2,000 deductible means you pay the first $2,000 of your costs.

Therefore, the higher the deductible, the less your insurance policy might have to pay out. As a result, you might be able to save money if you carry a higher deductible on your policy. However, even though increasing your deductible might save you money in the short term, you will have to pay more out of pocket if you make a claim. Therefore, only increase your deductible after considering your ability to pay this cost on your own.

Of course, do not forget to ask your insurance agent to advise you on policy discounts that you might be able to apply to your policy. These might include safe driving discounts, student discounts and discounts for memberships in professional organizations. In the end, these benefits might provide you even more ability to save on your rates.

Convenient Ways to Save on Your Car Insurance

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