One of the inevitabilities in life is an increase in car insurance rates. With new technologies available, insurers can better monitor drivers’ activity and assess their risk. There are also many more ways for drivers to be distracted behind the wheel, meaning more accidents and more risk to insurers. It’s important to understand how your insurance works in order to do what’s in your power to reduce your rates. As BankBazaar.com explains, there are two uniquely separate ways to go for coverage:

Comprehensive insurance covers damage to the policyholder’s car, death of someone in that car, and damage to the other person, property, or the other driver’s car (or a third party’s car)

Third party insurance offers limited coverage for damage done to the other party’s vehicle, property, or person.

Ways to save

Because of the various exclusions outlined in insurance policies, an important way to save money is by understanding these fully and forming driving habits that ensure you’re operating within your coverage.

• Avoid the obvious. Car insurance clauses in your policy mean you aren’t covered for certain types of damage. And while some of these are out of your control, do what you can to avoid those within your control, like driving without a license, driving under the influence, and using the vehicle in ways not agreed to in the policy. Also be sure to renew your policy in a timely fashion to avoid lapses in coverage.
• Consider opting into additional coverage. While standard plans may not cover mechanical failures if you’re not in an accident, Economictimes.com suggests adding on engine protector for those who do off-road driving or have a luxury car. This may cost you more money in the short-term, however, you’ll save out-of-pocket costs in the long term if you avoid having to pay out-of-pocket for a new engine.
• Be a better driver. This is an obvious one that is typically overlooked. It takes two cars to get in a collision, and chances are that at least one of them is not driving in a safe manner. Reviews.com suggests making changes to your driving habits to avoid speeding and distractions while behind the wheel. This isn’t an immediate way to save, rather, it reduces the possibility of you getting in an accident and can help you avoid one altogether in the future. And since the average driver gets in an accident once every 18 years, this can pay off more than once in your life.