Car Insurance - How can you lower your premiums?
Lowering your car insurance premiums can seem like the Holy Grail, but there are ways to get a discount (even if you've made a few mistakes in the past). Read this blog post for tips on how to lower your rates.
The most obvious way to reduce your premium is not to break the rules. But sometimes that’s easier said than done — or it might be difficult for you or someone in your family because of chronic health problems, old age, intellectual disability, etc. If you do break the rules, it can be even more difficult to lower your car insurance premium.
Unlike accidents, which are fairly minor and not necessarily your fault, breaking the rules on your policy is a serious offense. And if you’re caught doing anything against the conditions of your policy, it can take some of your hard-earned money from you — and don’t be surprised if it takes more than you think fair.
It’s true that most people who commit infractions pay less than those who don’t. The average savings (from a sample of 200 drivers) was $490 per policy year for drivers with just one offense compared with drivers who committed no offenses during their policy periods*. The savings increased with the number of offenses committed.
So if you break the rules, it’s important to remember that an insurance company is in business to make money. That means they want to make you pay for any infractions or mistakes on your policy. Depending on how serious the infraction, the consequences can be significant and long-lasting.
Here are some suggestions that could help you lower your premium and better protect yourself from higher premiums:
Keep an eye out for lower rates . Compare rates at least once a year so you aren’t paying more than necessary for your coverage. See our rating system at www.icici-insurance.com/rate_finder/.
. Compare rates at least once a year so you aren’t paying more than necessary for your coverage. See our rating system at www.icici-insurance.com/rate_finder/. Keep your driver profile up to date . If you have a new driver, it’s very important that they are added to your policy right away and that ICICI Direct is provided with their driving history – don’t take the risk of waiting months or years before adding them (it could significantly impact your premium). If someone in your household has taken some time off from driving, make sure they are still listed on the policy – and that the insurance company has updated records.
. If you have a new driver, it’s very important that they are added to your policy right away and that ICICI Direct is provided with their driving history – don’t take the risk of waiting months or years before adding them (it could significantly impact your premium). If someone in your household has taken some time off from driving, make sure they are still listed on the policy – and that the insurance company has updated records. Don’t let anyone drive without insurance . Make sure everyone in your home is listed on your policy and that their coverage isn’t lapsed. This is particularly important if you have friends or family members who stay with you for extended periods of time.
. Make sure everyone in your home is listed on your policy and that their coverage isn’t lapsed. This is particularly important if you have friends or family members who stay with you for extended periods of time. Review the list of accidents, tickets, and convictions . If you’ve had any accidents, tickets, or convictions over a specified period of time (such as moving violations), make sure this information is updated with the insurance company.
. If you’ve had any accidents, tickets, or convictions over a specified period of time (such as moving violations), make sure this information is updated with the insurance company. Update police records if required by social security .
. Get a quote every year . ICICI Direct can provide you with a quote every year for your auto, home, and health insurance.
. ICICI Direct can provide you with a quote every year for your auto, home, and health insurance. Make sure that the details of your policy are up to date . Let’s face it – even the smallest details can impact your premium such as the number of trunks and spaces on your vehicle. More complicated things to check include whether you are listed as “required by hire” or if you have an exemption from all driver conditions (like seniors and students). Get everything in writing from the insurance company to make sure it is accurate before buying a policy.
. Let’s face it – even the smallest details can impact your premium such as the number of trunks and spaces on your vehicle. More complicated things to check include whether you are listed as “required by hire” or if you have an exemption from all driver conditions (like seniors and students). Get everything in writing from the insurance company to make sure it is accurate before buying a policy. Don’t use mobile devices while driving . If you have been involved in an accident, you might be asked for information on your phone by the police or insurance company. They want electronic copies of records such as e-mails, text messages, and apps – anything that could help them figure out what happened. So make sure your phone is secure before you get behind the wheel.
. If you have been involved in an accident, you might be asked for information on your phone by the police or insurance company. They want electronic copies of records such as e-mails, text messages, and apps – anything that could help them figure out what happened. So make sure your phone is secure before you get behind the wheel. Stay safe and don’t drive when you are tired . If you fall asleep at the wheel or are otherwise distracted while driving, it could lead to an accident and/or a ticket – which will affect your premium (not to mention risking your life).
. If you fall asleep at the wheel or are otherwise distracted while driving, it could lead to an accident and/or a ticket – which will affect your premium (not to mention risking your life). Don’t let teenage drivers take the car out late at night . If you have younger drivers in your home, make sure they don’t go out at inappropriate hours or in unsafe conditions.
. If you have younger drivers in your home, make sure they don’t go out at inappropriate hours or in unsafe conditions. Keep your vehicle up to date . Make sure that all necessary repairs are carried out on time and that any safety recalls or other information is communicated to you.
. Make sure that all necessary repairs are carried out on time and that any safety recalls or other information is communicated to you. Have your car regularly serviced so you know everything is running smoothly.
so you know everything is running smoothly. Use your car for safe purposes . There are many ways to use a vehicle that do not carry an increased risk of accident or traffic violations. Even if it may cost more money, consider services like UBER or CAB to reduce the risks involved with driving on a regular basis (or use public transport).
. There are many ways to use a vehicle that do not carry an increased risk of accident or traffic violations.
Conclusion
Because your premium is based on a lot of factors, it’s important to be aware of any changes to your driving or lifestyle that could impact it. There are a number of ways you can affect your premium in either positive or negative ways – but generally, being more cautious and safe on the road is good for your pocket (and life).
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