As of now, the focus is more on car insurance companies punishing errant drivers by hiking up insurance, let’s hope that the reverse also happens, and safe drivers get more than the normal no claims bonus.
2. Check on rate differentials based on location
While this may be a bit drastic, rates vary widely from one location to another because of the likelihood of an accident or a theft. In general, car insurance rates are lower in rural areas, so you can keep that in mind. We are not suggesting you move to the wild hinterland, but do keep the variation in rates in mind in case you alternate between city and farm. You may have a tough time arguing this out with your insurer, but that’s what good salesmanship is all about, let your insurance rep work it out to your advantage.
3. Loyalty pays in the long run
It pays to choose one company for all your insurance needs. Most offer a discount for combining car and homeowners with one provider.
4. Don’t fall for the extra coverage trap
Just doesn’t make sense to splurge a lot on protecting older cars. Rule of thumb says it may make sense to drop that coverage if your car is worth less than 10 times the premium.