High-risk drivers often have a harder time getting car insurance. If you've received speeding tickets, a DUI, or other related driving issues in the past, you may be experiencing higher rates while shopping for car insurance.
The good news is that you can still save on costly premiums by incorporating the right strategy. By adjusting your deductible, comparing prices, and knowing your limits of liability, you can significantly reduce monthly premiums. Here are some useful tips to consider.
1. Consider Your Limits of Liability
The limit of liability refers to how much your insurer will cover in the event of an accident. Insurance companies often break these into bodily injury limits, property damage limits, and compensation for pain and suffering. Setting lower limits will result in lower premiums. However, you may be liable for covering any differences that arise after your insurer fulfills a claim.
Consider what your risks are, your driving habits, and how much your vehicle is worth. This information will help you select an appropriate limit of liability for your policy.
2. Set a Higher Deductible
Another useful tip is to set a higher deductible for your policy. Higher deductibles (such as $500) could reduce your premiums by as much as 30%. The key is to set aside some money to meet your deductible in case you ever need to make a claim. Combined with a safe driving record, you will save more money over time by paying lower premiums.
3. Shop Around
Comparing rates is one of the best strategies for saving money on car insurance costs. Shop around when looking for a policy, inquire about discounts, and seek out coverage options that are designed for high-risk drivers.
For example, some insurers cater specifically to DUI drivers or drivers with lengthy records. They may also offer lower rates in return for a safe driving record, giving you more opportunities to save money down the road. Be patient and compare different policies before making a decision.
4. Be Listed Under Someone Else's Policy
If you're having trouble getting competitive rates, consider being listed under another person's policy. You can be the secondary driver under your spouse or sibling's insurance. While there may be some limitations to your driving freedom, being listed as a secondary driver could significantly reduce your monthly premiums. This is also a good idea if you're still working towards cleaning up your driving record.
After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.