Many vehicle owners are looking for ways to save on auto insurance – without compromising on coverage.
Insurance premiums have been on a steady increase the past few years and has become a cause of concern for consumers. A recent industrywide car insurance satisfaction survey indicates that satisfaction levels have dropped by seven points. The 6.6% insurance hike comes up against a 1% inflation rate and this has many vehicle owners looking at ways to save on insurance – without compromising on coverage.
There are several ways to save on insurance premiums; however, insurance owners should be careful when they consider changing their policy or while reducing coverage. Car insurance is used to pay for all expenses in the event of a car accident. Ultimately, car insurance should be able to cover for repair costs, medical expenses, lost wages, and other accident-related expenses, without compromising an accident victim’s ability to pay for basic daily expenses. Here are a few pointers on getting the maximum out of insurance without compromising on coverage.
How to Save
- Shop for insurance – Car insurance buyers should shop around and look at different insurance providers. Choose one that is best suited for your needs.
- Look for discounts – Ask an insurance provider for discounts. Many insurance companies include discounts for good driving behaviour, students’ concessions, and discounts for certain groups.
- Use one insurance provider – Many insurance companies offer multi-policy discounts. One can save by moving all policies (car insurance, homeowner’s policy, medical insurance, etc.) to one insurance provider.
- Higher deductible – While trying to save on insurance premiums, increasing the deductible amount is one way to lower the monthly payment. However, policy owners should be aware that raising the deductible can cost more in the event of an accident.
- Safety features – Adding safety features and technology in cars are designed to reduce accidents. Some insurance companies will consider these while calculating premium rates. More safety features can translate to lesser premiums.
- Good credit – Credit scores are always considered when policy premiums are calculated. Maintaining a good credit score is an important factor for deciding insurance premium.
- Stacking UM/UIM coverage – Dual or multiple car owners can opt to stack their UM/UIM coverage wherein the coverage doubles at an inexpensive cost.)
Avoid These Costly Mistakes
Reducing coverage can save on premium costs. However, it always comes at a price, especially in the event of an accident. Here is what one should not do.
- Uninsured and underinsured motorist coverage (UM/UIM) – UM/UIM is a coverage component that covers an accident victim in case the at-fault driver is not covered or is not covered enough to pay for the expenses. One should never reduce the UM/UIM coverage.
- Tort option – Policy owners should always opt for full tort. In the event of an accident, the full tort clause enables a victim to sue for pain and suffering, thereby increasing the settlement amount one receives for car accident damages.
Chicago Auto Wreck Lawyer
If you have been involved in an accident, consult a Chicago auto wreck lawyer before you accept a settlement. Call Willens Law Offices at (312) 957-4166.