Reducing the cost of vehicle ownership is one of the most important tasks for today’s expenditure-focused owners. Insuring a vehicle is one of those costs that can be particularly challenging, especially for those with little understanding on the insurance industry and with little additional income to pay their month-to-month costs for insuring the vehicle. Here, we’ll look at three tips for reducing those high insurance costs when insuring used vehicles.
1) Consider Up-Front Payment
Some insurance companies allow used vehicle owners to pay for their entire year of insurance at a reduced rate than the per-month cost. Insurance companies offer this service because they would often rather receive a lower monthly cost now than risk the driver switching to another insurance provider midway through the year. In addition, a premium is often added to monthly insurance fees in order to cover administration and other payment processes. Therefore, many companies will be open to considering an annual payment structure. Owners should speak with a specialist at their insurance company and outline their ability to pay annually.
2) Reduce Liability Coverage on Low Cost Vehicles
For those with older vehicles that are simply used to get from point A to point B and little else, it’s important consider the amount of liability coverage under the vehicle’s insurance policy. Oftentimes, the level of liability coverage offered by the premium insurance plans is far higher than necessary in order to cover both the driver and the insurance company. While it’s important not to select the minimum in terms of liability, careful consideration of policy options can help save hundreds of dollars per year on those low cost, older model used vehicles.
3) Choose Multiple Policies from the Same Insurer
One common method for reducing long-term insurance costs is selecting the same company for various types of insurance. For those with home insurance, car insurance and life insurance with three different companies, it can often help save thousands in premiums per year to consolidate with one company. Carefully selecting an insurance provider will ensure that all policies offer low-cost coverage with outstanding liability protection.
Savvy vehicle owners should review their coverage levels and analyze whether their current costs are worth the benefits derived through their policy. Speaking with your insurance specialist and reviewing the tips highlighted in this article can help you to save on those high premiums when insuring your used vehicle.