With the rise in car and fuel prices maintaining a car has become very difficult. An added cost is that of car Insurance coverage. You cannot change the price of fuel but you can control the cost of insurance. Here is how to cut the cost of car insurance.

Choose your coverage carefully:

It is very important that you choose your Car Insurance Coverage very carefully. If you have an old car you can save money by cutting on collision coverage. Similarly some people get good health insurance coverage from their employers. This means they can forgo car insurance coverage such as personal injury protection. So by choosing you coverage carefully you can reduce the cost of car insurance.

Go for high deductibles:

Deductible is the sum of money that you have to pay yourself when you file a claim. A high claim can lead to lower premium payments substantially. So if you are looking for cheap car insurance, opt for high deductibles. But make sure you set an amount of deductible that you can afford to pay.

Reduce miles driven:

Insurance companies prefer customers who drive their car infrequently. Instead they use more of options such as mass transit or car pooling. This reduces the risk of getting into accidents, hence the chance of filing a claim. So by having lesser miles driven you can have cheap car insurance.

Use garage to park the car:

Get your garage cleared off and make effective use of it by parking your car safely in it. This reduces the risk of the car being stolen and damaged by hooligans. This will save you as well from the troubles associated with such unfortunate incidents.

Improve credit rating:

Insurance companies reward customers having good credit rating with discounts. They use information pertaining to a customer’s credit history to arrive at insurance rates. So it is better to pay the bills on time, maintain a low level of credit and keep a check on it.

Bundle insurance policies:

Insurance companies entice customers to bundle all their insurance policies together with a single insurance provider. So if you have home insurance, car insurance and personal life insurance, get it all bundled with a single insurance provider. It will save you from the hassle of going through different policies and procedures adopted by different companies. Moreover, you also be given exclusive service and attention as a prized customer.

List all the drivers using the car:

If your car is driven by multiple users such as your spouse or children, better get them all listed with the insurance company. This will help you enjoy discounts from the insurance provider. If any of the drivers using your car is a teenager, the company might charge high in that case as teenagers are considered as risky to insure. But if the teenager earns good grades that can serve as a benefit and help you lower the insurance rate.

Look out for better rates:

Even if you have your car insured, there is no harm in looking for alternative insurance providers. Especially when your insurance policy is reaching its renewal time, look out for better and cheaper quotes from various insurance providers. But make sure you do not ignore the service quality. That is a very important determinant of which insurance company to settle for.

Choose the car carefully:

If you are tight on budget then you should choose your car very wisely. New and fancy cars are very expensive to insure as compared to old, second hand and strong sedans. So choose your car very carefully that costs less to insure.

These are some of the factors you must consider when deciding on your car insurance coverage in the most cost effective way possible.