As the owner of a car, one of your responsibilities is to carry car insurance. However, carrying car insurance is not cheap. Depending on where you live, the premium for your car insurance may be equal to or near the value of your car payment.
Luckily there are steps you can take to lower the cost of your car insurance premium. Many insurance companies offer a variety of discounts that you can take advantage of to lower your car insurance premium.
Discount #1: Low Mileage Discount
How many miles you drive matters. Many insurance companies offer a low mileage discount. With a low mileage discount, you must drive less than a specific number of miles each year, which is determined by your insurance company. As a low mileage driver, you may notice savings in your base rate. A low mileage discount may affect the amount you pay for such parts of your policy such as bodily injury liability, property damage liability, collision coverage, and personal injury protection. You may be required to verify your odometer readings with your insurance company. You can use a low mileage discount if you keep the number of miles you drive each year within your insurance provider's limit set.
Discount #2: Usage-Based Insurance
Usage-based insurance is a little bit different than a low mileage discount. With usage-based insurance, you must install a monitoring device on your vehicle. Your insurance company will use this monitoring device to assess your driving habits.
Your insurance company will monitor things such as how many miles you drive, what time of day you drive, when you brake and how often you brake, how smoothly you turn, and how fast you accelerate. Most insurance companies will monitor your driving for a set period, usually somewhere between 30 and 90 days.
Your insurance company will then use this information to adjust what they charge you for elements of your insurance policy, such as property damage liability, bodily injury liability, and collision coverage. You may get a discount, or you may not, based on how you drive.
Discount #3: Vehicle Safety Discounts
The vehicle you drive can impact your insurance rates. Driving a car with safety features can help reduce your insurance premium. Theft prevention or anti-theft device can usually offer you a sizable insurance discount. You will enjoy the most considerable discount if you have a vehicle tracking system or recovery system installed on your vehicle.
There are basic vehicle safety discounts you can enjoy, including a discount if you have the VIN etched onto your windshield. You can also enjoy discounts for features such as anti-lock brakes, traction control system, passive restraint system, daytime running lights, and electronic stability control.