As car insurance continues to climb faster than inflation, automobile insurance rates can take a bigger chunk out of your budget. But there are a number of ways you can lower your auto insurance rate quotes without sacrificing terms that are important to you. Although not all discounts may be applicable to your particular circumstances, no doubt you will be able to save money on car insurance by considering these 9 great tips to get cheaper car insurance.
#1 Increase Your Deductible
The less money you require your car insurance company to pay when an accident occurs, the lower your auto insurance premium will be. One way to reduce your insurer’s liability and lower your monthly rates is to request a higher deductible. Your deductible is the amount you must pay before your car insurance company pays for damages. Deductibles usually range from $250 to $500 or even higher. So if you have the financial resources to pay a higher deductible, or if you rarely experience car accidents, you might consider increasing your auto insurance deductible.
#2 Choose Easier Payment Methods
Auto insurance companies usually offer discounts if you make it easy for them to get their premium payments. Examples include paying a lump sum premium up front, such as for 3 months, 6 months, or even a year. Also, you can usually get a car insurance discount for agreeing to automated debit payments from your checking account.
#3 Add Optional Safety Features to Your Car
Car theft and auto accidents are the two top liabilities for auto insurance companies. You can typically lower your car insurance premium by taking action to prevent your car from being stolen, make it easier to locate your stolen car, reduce your chances of an accident, or reduce potential damages when an accident occurs. Typical auto safety features include car alarms, anti-lock brakes, automatic seat belts, side air bags, and anti-theft devices (alarm systems).
#4 Ask for a Student Discount or Schooling Discount
Auto insurance companies correlate good performance in school with good driving. So the best car insurance companies usually offer discounts for good students who average at least a “B”. In addition, car agencies will often offer discounts for policy holders who take continuing driver’s education courses or defensive driving classes.
#5 Qualify for an Infrequent Driver Discount
Simply put, the less you drive, the less of an accident liability you are. So if you are an infrequent driver, you can usually qualify for an infrequent driver (low mileage) discount. Auto insurance companies will usually offer discounts for low-mileage drivers who drive less than 6,000 miles per year, or possibly less. In such cases, you may be required to submit your odometer readings yearly or be subject to inspection.
#6 Maintain Good Credit
There is no direct causation between maintaining high credit scores and avoiding costly car accidents. Yet auto insurers commonly rely on statistical data that shows some correlation between credit scores and driving record. As the thinking goes, good credit demonstrates responsible behavior; and responsible behavior translates into safe driving. For people with poor credit, they may be unfairly penalized with higher car insurance rates even if they have an excellent driving record. On the flip side of the coin, if you have good credit, you may qualify for a good credit discount on your auto insurance policy.
#7 Safe Housing and a Garage Can Lower Your Rate Quotes
Car insurance carriers consider where you live and whether you maintain safe parking for your car when determining your auto insurance premium. Normally, your zip code is used to pull crime and car theft statistics in your neighborhood when calculating your rates. Obviously, the lower the crime rate in your zip code, the lower your car insurance premium. Also, if you’re able to park your car in a garage, your auto insurance premium will be lower since it is more difficult to vandalize or steal a car from a garage, and since natural elements are less likely to damage your car if it’s parked in a garage.
#8 Insure Additional Cars and Consider Policy Bundling
Once you find the right auto insurance company for you and your individual circumstances, consider moving all your auto insurance policies to that same insurer. Also, research other types of insurance through the same insurer, such as homeowners insurance, life insurance, and health insurance. Multi-vehicle policies and multi-policy customers often receive significant discounts.
#9 Drive Safely and Avoid Accidents
Above all else, you’ll be able to minimize your car insurance premium by driving safely and maintaining a clean driving record. This means avoiding car accidents, traffic violations, and driving-related convictions. A clean driving record usually translates into a significant good driver discount.
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