The cost of owning a vehicle quickly adds up between fuel, maintenance, and insurance. Any little bit of money you can save makes a difference. While you might feel like you don’t have any say in your car insurance rates, there are things you can do to reduce the price.
The most obvious way to lower your premium is by being a safe driver. People with good driving records automatically get lower rates, but even if you have a few blemishes on your record, there are steps you can take to reduce your car insurance rate.
1. Check Insurance Rates Before You Purchase a Car
If you are just at the beginning stages of buying a car and getting insurance, do your research in advance. Not all vehicles are considered “insurance friendly.” Car insurance providers determine premiums based on a car’s repair cost, safety record, value, and the likelihood of theft. For example, a sports car is more likely to be crashed, stolen, and expensive to repair. As a result, insurance companies charge you more money because there is more liability.
On the other hand, some vehicles can get you much lower insurance rates based on safety features. Some auto manufacturers build their cars to withstand crashes better than others. They may also include special features, such as:
- Brake Assist
- Collision Warning
- Lane-Departure Warning
- Blind-Spot Warning
- Pedestrian Detection
- And More!
2. Request a Higher Deductible
Whether you’re dealing with health, home, or auto insurance, your deductible always has a significant impact on your premium. You can lower your premium by increasing your deductible, but you need to find the perfect balance. While you could make your payment more affordable by dramatically increasing your deductible, you shouldn’t increase the deductible beyond what you can afford to pay in the event of an accident.
3. Decrease Coverage on Older Cars
Older cars often aren’t worth the premium you are paying if you have too much coverage. In these cases, it would make more sense to reduce your insurance amount. For example, you could drop collision and comprehensive coverage if it would be more cost-effective for you to pay for the repairs out of pocket.
If you aren’t sure of your car’s value, we recommend that you ask a bank or auto dealer. You can also use a site like Kelly Blue Book to determine your car’s current value. With that information, you can change your coverage when it is time to renew your car insurance policy.
4. Seek out Auto Insurance Discounts
Did you know that many car insurance providers offer a variety of discounts? If not, you could be missing out on valuable savings. We recommend that you talk to your insurance company to see if you qualify for a low-mileage discount. This discount would be for anyone who carpools to work or works from home.
Other companies offer deals to good students or good drivers with clean records. You could even take a defensive driving course to lower your rate. Other discounts you may be eligible for include:
- Multi-Car Discount
- No Accidents in Three Years
- Good Credit Record
- Customer Loyalty
- Combined Auto and Home Insurance
- Anti-Theft Devices
5. Shop Around with Different Providers
Lastly, if you still aren’t satisfied with your rates, you should consider shopping for a policy with another company. We suggest that you get a car insurance quote from at least three providers before you settle on one plan. Different companies and agents may be able to offer you different rates.
If you want to take the leg work out of insurance shopping, you can utilize several online price comparison tools. Your state insurance department may also be able to help point you in the right direction.
Take the First Step Towards Lower Rates
We suggest that you work your way through the steps if you would like to find cheap car insurance. However, you shouldn’t rely on price alone. We suggest that you find a company with a reputation for excellent service because there is value in that as well. The lowest rates might not always mean the best coverage. It is up to you to find the best rate for your needs and budget.
