You’ll have to pay for insurance if you own a vehicle, but it doesn’t have to be a fixed cost. There are many ways to save on your insurance premiums if you know how to take advantage of a good driving record and discounts. Most vehicle owners assume that insurance is a cost that can’t be negotiated, but that isn’t the case.
It may be worth the time to take a closer look at your premiums and do the legwork that will bring you some savings. It’s possible to get a break on your premiums if you know where to look and how to take advantage of the insurance system.
An online search will help you find free car insurance quotes, but that won’t necessarily show you the lowest price. So let’s take a closer look at a few tips to get lower insurance premiums.
7 Tips To Get Lower Insurance Premiums
1. Increase Your Deductible
When you experience an accident and have to make a claim on your insurance, your deductible is the amount you have to pay out of pocket before your coverage kicks in. Most people want to keep their deductible low, and on average, most policyholders have a $500 deductible.
If you want to save on your premiums—the amount you pay every month—you can increase your deductible amount. For example, setting your deductible at $1,000 will bring down the cost of your monthly premiums. It’s a good idea to put the amount of your deductible aside in your emergency fund in case you need to use it.
2. Improve Your Credit Score
Insurance companies are all about assessing risks. If you have a poor credit score, you’ll end up paying more on your insurance premiums. To keep your rates lower, it’s a good idea to try to improve your credit score. Check your score by getting a copy of your report to ensure there are no errors or old accounts listed that may be affecting your rating. Clients that have higher credit scores often pay lower premiums.
3. Cut Your Commute
The number of miles you drive each year will have a significant impact on your car insurance costs. The more time you spend on the road, the higher your premiums will be. If possible, moving closer to work to shorten your daily commute can bring down your insurance costs. If moving isn’t an option, you can make arrangements to carpool to the office, bringing down the number of miles you’re putting on your vehicle and saving you on your insurance premiums.
4. Shop Around
Not all insurance companies are created the same. Getting a quote from more than a few companies will give you a clearer picture of where you can save money on your premiums. An internet search of a few insurance companies will help you find one with the best coverage at the best prices. Just because you have been with an insurance company for a few years doesn’t mean you can’t get a better rate somewhere else. It pays to take the time to shop around.
5. Take Advantage Of Discounts
Most insurance companies offer a variety of discounts that they don’t advertise to their customers. To take advantage of available discounts, you’ll have to ask your broker. Some standard insurance discounts include the following:
- Senior discount
- Military or veteran’s discount
- Loyalty discount
- Multiple policy discount
- Safe driving discount
6. Ensure A Safer Vehicle
The style and safety rating of your vehicle will significantly impact how much you pay for your insurance premiums. Cars with superior safety ratings and features pose less risk and can result in savings on your insurance costs. When shopping for a new car, ask your dealer about the safety ratings before deciding on a new model.
7. Take A Defensive Driving Course
If you have a few marks on your driving record, you may struggle to find the best insurance rates. A great way to bring down your costs is to take a defensive driving course. You can gain insight into the dangers on the road and pick up some new driving skills while earning a break on your premiums.
If you take the time to investigate the possibilities, several strategies are available that will help you save hundreds of dollars each year on your auto insurance. You can reduce your annual mileage by organizing a carpool, signing up for a defensive driving course, raising your deductible, or buying a safer car. Follow these tips to help you save a bundle on your car insurance costs.