How to Lower Your Car Insurance Premiums
If you’re looking to reduce your car insurance premiums, there are a number of things you can do. Some can be implemented quickly, while others may take time to work.
One of the easiest ways to lower your premiums is to shop around for quotes from different companies. Getting at least three price quotes can save you hundreds of dollars each year.
1. Shop Around
Prices from companies vary and the way they calculate your rate could be different than the next company you shop with, which can save you hundreds of dollars in the long run.
Get a personalized quote from at least three different insurers and compare coverage and deductibles. Then ask about available discounts, such as multi-vehicle, good student, military, safe driver and customer loyalty programs.
2. Reduce Unnecessary Coverage
One of the best ways to lower your car insurance costs is to reduce the coverage you don’t need. Removing perks like rental car reimbursement or roadside assistance from your policy could save you hundreds of dollars a year.
Another way to save a bundle on your auto insurance is by increasing your deductible. A higher deductible will not only save you money on your monthly premium, but it will also make for a more enjoyable experience should you need to file a claim.
3. Increase Your Deductible
If you can afford it, raising your deductible may help lower your premiums. However, you should also be prepared for the higher out-of-pocket costs.
Choosing a high deductible can be a risky move if you don’t have enough emergency savings to cover the increased costs. You should only consider increasing your deductible if you have plenty of money saved for emergencies, such as an unexpected car accident.
4. Buy a Safer Car
When choosing a car, safety is an important consideration. Some models of vehicles fare better than others in crash tests.
Fortunately, thanks to technological innovation and stringent safety laws, the cars of today generally offer the best protection yet.
Vehicles are rated on their crash performance by agencies such as the National Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety (IIHS). These scores can help drivers make an informed choice about which vehicles will protect them the most in the event of a collision.
5. Be a Safe Driver
A clean driving record can help lower your premiums, so make sure you don’t get any speeding tickets or other traffic violations. Some companies also offer a discount to drivers who go three years without any accidents or citations.
Distracted driving is one of the most dangerous things to do behind the wheel, so it’s essential that you resolve not to text or use a cell phone while you’re on the road. You can avoid distractions by using a hands-free cell phone solution or simply putting your phone down before you start your journey.
6. Take a Defensive Driving Course
If you’re a good driver, you may be able to lower your car insurance premiums by taking a defensive driving course. In most cases, insurers offer a discount of 5 to 10% for drivers who complete a course.
While the course can cost anywhere from $25 to $50, it’s worth it for the money you’ll save on insurance. Not only will you get a discount, but you’ll also improve your driving skills.
7. Boost Your Credit Score
Having a good credit score is an important way to reduce your car insurance premiums. Most insurers use your credit information when deciding to charge you higher or lower rates.
You can boost your credit score by making timely payments, not obtaining more than you need and keeping your credit balances low. You may also want to review your credit report on a regular basis to find any mistakes that are negatively impacting your score.
8. Get a Multi-Car Discount
Multi-car discounts can save you up to 25% off of your car insurance premiums. They vary widely from insurer to insurer, so it’s important to shop around.
A multi-car discount can be especially helpful if you’re a family with several vehicles, or you have multiple drivers in your household. However, you’ll need to qualify for the discount to receive it.
9. Drive Safely
One of the easiest ways to lower your premiums is to drive more safely. Insurance providers typically rate vehicles on the basis of their safety and theft rates. Driving a vehicle with high safety ratings can help you save money on car insurance, since it reduces your risk of damage or injury.
Increasing your deductible can also help you reduce your premiums, since it reduces your overall risk of accidents. In addition, taking public transportation can lower your carbon footprint and reduce your driving time.