10 Tips to Save Money on Insurance for Compact Cars

10 Tips to Save Money on Insurance for Compact Cars

Compact cars are a popular choice for drivers because they typically have lower gas mileage, and therefore less expensive insurance premiums. However, these small vehicles can be more costly to repair if the driver is in an accident since many of them don’t come with side airbags or front-end crumple zones. In this article we will discuss 10 tips on how to save money on car insurance for compact cars!

1. Shop Around for Insurance

Car insurance can be a competitive market. By shopping around, you have the opportunity to compare prices from several different car insurance companies and find out which insurer will give you the best price on your coverage. Make sure to ask about specific discounts that may apply to your policy (for example: good student discount). If you drive a hybrid vehicle, you may be able to receive a lower rate with the companies that offer a ‘green’ discount.

2. Raise your Deductible

One way to save money on insurance is to raise your deductible from $200 to $500. This means if you have an accident and file a claim, you will need to pay the first $500 and the insurance company will cover the rest of your expenses. By raising your deductible to $500, you can reduce your premium by as much as 30%.

3. Increase Your Deductible to $1,000

If you’re willing to pay for minor repairs yourself in order to save on car insurance premiums, consider increasing your deductible to $1,000. This means if you have an accident and file a claim, you will need to pay the first $1,000 of the claims before your insurance company covers anything. By increasing your deductible to $1,000, you can reduce your premiums by as much as 40%.

4. Choose Your Deductible Carefully

If you’re looking for ways to save money on insurance, consider choosing a deductible that costs more than $1,000. It is important to note however, that this is only the case if you don’t file any claims during the year. Insurance companies assume if your claim exceeds your deductible amount, you had at least one accident last year. This means you may lose your good driver discount if you have too many claims over the course of a year.

5. Earn Your Good Driver Discount

Many car insurance companies offer discounts for drivers who are under the age of 25 or have very few years of driving experience. They also typically provide ‘good driver’ discounts for those who drive carefully and obey the law. If you’re currently receiving a good driver discount, make sure to stay under the age of 25 and continue driving safely to maintain your low rates!

6. Increase Your Age

If you are over 25 years old but have clean driving records since the age of 21, consider increasing your age by two or three years. By doing so, you can save money on your car insurance premiums since most companies provide a ‘senior’ discount for drivers who are 55 years old or older.

7. Believe in Anti-Theft Devices

If you have an anti-theft device installed in your vehicle such as LoJack or OnStar, this may help lower your risk of theft and save you money on your premiums. Many companies offer discounts to drivers who have been fitted with an anti-theft device, since it shows that they are interested in protecting their investment.

8. Avoid High Risk Areas

If you’re looking for ways to lower your car insurance rates, avoid living in a high crime area where cars tend to get stolen, vandalized or broken into. By living in a less crime-ridden area, you have a lower risk of being involved in an accident and can help your insurance company reduce your premiums.

9. Be Careful on the Road

Aside from staying out of high risk areas, it is important to be careful when driving. Avoid speeding, tailgating or taking unnecessary risks while behind the wheel. In addition to obeying the law, your insurance company will reward you for good driving behavior with lower premiums.

10. Switch Insurance Companies

Last but not least, if you’re looking to save money on car insurance premiums, try switching insurance companies. You may be able to cut your premiums in half by shopping around and finding a new insurance company that offers better rates and discounts.

How can I reduce my insurance premiums?

If you have an accident and file a claim, you will need to pay the first $500 and the insurance company will cover the rest of your expenses. By raising your deductible to $500, you can reduce your premium by as much as 30%. You should consider increasing your deductible to $1,000 if the insurance won’t cover your expenses after you raise your deductible to $500.
By increasing your deductible to $1,000, you can reduce your premiums by as much as 40%. You should also try to earn a good driver discount, which is typically given to drivers under the age of 25 who have very little driving experience. Another strategy is to increase your age by two or three years, which will help you save money on car insurance premiums. Last but not least, consider installing an anti-theft device in your vehicle, such as LoJack or OnStar. By doing so, if your car gets stolen or vandalized you can receive a discount for this added security.

What is OnStar?

OnStar is an anti-theft device that allows you to track down your car if it gets stolen or misplaced. If your car gets stolen, the police will be notified of its exact location if it’s within the range of the OnStar device. By using this GPS tracking system, you can receive a discount of up to 20% on your car insurance premiums for adding this anti-theft device to your vehicle.

How do I get a good driver discount?

There are many ways to earn a good driver discount. If you are under the age of 25 but have very little driving experience, consider taking a driver’s education course or defensive driving course. By taking one of these courses and passing the exam, you can earn a discount with many car insurance companies. If you want to take the test, make sure to ask your insurer for more information about how much your premiums will be reduced when you pass.

What is LoJack?

LoJack for Laptops is an anti-theft device that allows you to track down your laptop if it gets stolen or misplaced. If your laptop gets stolen, the police will be notified of its exact location if it’s within the range of the LoJack device. By using this GPS tracking system, you can receive a discount of up to 15% on your car insurance premiums for adding this anti-theft device to your vehicle.

What type of discounts do I qualify for?

There are many discounts available for drivers, such as a good driver discount and an anti-theft device discount. A good driver discount is typically given to drivers who have very little driving experience or are under the age of 25. An anti-theft device installed in your vehicle, such as LoJack or OnStar, can also result in a discount.

How can I maintain a low deductible?

When it comes time to filing an insurance claim after an accident, you will need to pay the first $500. If you increase your deductible to $1,000 and are involved in an accident where your expenses total $1,000 or less, you will need to pay the full deductible. If your damages exceed $1,000 and you have a $500 deductible, your claim will be covered by your insurer. By taking this route, you can reduce your premiums by as much as 40%.

How can I earn a good driver discount?

If you are under the age of 25 but have had very little driving experience, consider taking a driver’s education course or defensive driving course. Many car insurance companies provide discounts to drivers who have taken a course and passed their exam. If you want to take a test to earn a discount, make sure to ask your insurer for more information.

In The End

So there you have it, 10 tips on how to save money when shopping for insurance. And remember, the more people that comment below and share their thoughts on this post with us in some way (even if they disagree!), we’ll be able to better figure out what information is most useful to our readers! Thanks again for reading – let’s keep them coming so we can continue sharing great content like this one with everyone who needs car coverage advice.

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