Not too many policyholders realize that they have a fair amount of power when it comes to their car insurance rates. There are plenty of things that you can personally do to lower how much you pay for your car insurance. Just because car insurance is required by law doesn’t mean that it has to be expensive. Here are some ways that you can cut costs and save on your car insurance.
How much you pay monthly or annually for your car insurance depends on personal factors like the state you live in. The national average is about $1,190, but it is possible your state has more costly insurance. The average amount of money a policyholder sets aside each month for insurance is around $120. However, if you have a luxury car, a spotty driver’s record, or are a younger driver -you will be paying much more. Once you see those insurance rates, you’ll absolutely want some discounts.
This involves collaborative efforts with your family living at home. Rather than getting an insurance quote for one car, see if you can get one for all the vehicles in your household. Premiums are known to be lower for a policy that has multiple cars listed. Usually, the other drivers listed on the policy must be a part of your household and family. If two unrelated people wish to be on the same policy, then they have to insure a vehicle that they both own. Again, bulk policies have lower premiums than standard single-person ones.
A good way a younger driver, usually under the age of 25, can save is with good grades. If a younger driver is on their school’s honor roll or has a good GPA, they can qualify for a good student discount. Student drivers tend to have the highest auto insurance rates due to a lack of driving history and associated risk. Some insurance companies offer up to a 39% discount for good students.
Similar to a multi-car discount, insurance providers offer more than just an auto policy for a multi-policy discount. For example, you can bundle both car insurance and homeowners’ insurance for a discount on your premiums since the provider is happy you have them so much business. These discounts will be reflected on all the policies with the insurer and go up to 25%.
A defensive driving course can be required after a traffic violation, but it looks much better to your insurance company if you take one unwarranted. They will often give you a discount upon completion. A defensive driving discount can go up to 23%.
Of course, the best you can do is be the safest driver you can be while out on the road. Being more mindful of speed limits, pedestrians, and distractions helps keep your driving record clean. This, in turn, keeps your auto insurance premiums from increasing. In fact, if you’re that safe of a driver, your auto insurer may reward you with a safe driver discount of up to 23%.
In insurance, your deductible is what you pay to your insurance provider during the claims process. This amount is set with your insurer when your policy begins. Deductibles usually go up to $1,000 and have an inverse effect on how much you pay for car insurance. In simple terms, a high deductible will result in lower rates. However, you should always be comfortable with paying your deductible should you choose to change it.
Insurance companies will often look at a potential policyholder’s credit score to gauge their financial responsibility. That’s a huge part of having a car insurance policy since you have to stay on top of your monthly premiums. If they find your credit score to be higher than average, then it can be reflected in your premiums. However, you can pay your bills on time and alleviate debt for a better score and, thus, better premiums.
Affordable insurance is out there; you just have to find it. Before your current policy renews, you are more than within your right to get quotes from other insurance companies. Car insurance quotes are free, so you should take advantage of them. But be mindful even though you find lower premiums, it doesn’t mean you found a better company, so remember to look at those reviews.
Suppose you are in the process of moving or planning to soon; look at facts about where you are moving. Is it in the city or countryside? What is the population? These play a role in determining your auto insurance rates. If your area is subject to large amounts of traffic and other drivers, then the higher the premiums will be. But, if you are planning a move from the city to the suburbs, you may notice a drop in your insurance rates.
Auto insurance companies also base their premiums on how much you drive. That means if you’re driving an hour to work every day, you’ll definitely have higher premiums than someone whose community is only 15 minutes to work. In order to reduce your mileage, you can start taking public transit. You will find that this will reduce your car insurance rates because you are behind the wheel-less.
While you may be required by law to carry basic liability coverage, full coverage add-ons are usually optional. Typically, the older the car is then, the less coverage the policyholder buys because it isn’t worth it. Newer cars are better insured with full coverage, but be sure to think carefully before dropping coverage you feel you don’t need. You can never tell what will happen while out on the open road.
Car insurance companies always look at your car’s accident prevention and safety features -from airbags to rearview cameras. You can add new safety features like anti-theft devices. Your insurer may cut you a 25% discount on your premiums if you do so.
Always inquire with your insurance agent about specific discounts you may qualify for. This can include military or corporate discounts depending on where you work. It never hurts.
If you don’t drive a whole lot (fewer than 10,000 miles annually), then you can opt for a pay-per-mile policy where your premium is based on how many miles per month. Some insurance companies may require a telemetric device in your car to track your mileage.
Other notable ways to save money on your car insurance are things such as going paperless when you make your payments, paying a one lump sum for your first premium, and other things you can personally do with your insurance company. Always ask the insurance providers you are looking at about what discounts you qualify for.