While the cost of car insurance increases daily, finding ways to lower your insurance rates is essential. Because car insurance is important for so many people and is a type of insurance that cannot be overlooked, it often makes sense to explore several ways that can help reduce the cost.
Fortunately, there are several strategies drivers can employ to lower the rates of their car insurance without having to sacrifice coverage.
From taking advantage of available discounts to bundling your insurance policies, these simple steps can make a significant difference in the amount you are charged for auto insurance.
This article is aimed at providing tactics that can help drivers obtain the best and most affordable car insurance rates. If you don’t want to miss out on valuable information, ensure you read to the very end.
How to Lower Your Car Insurance Rates
As earlier stated, there are several ways that can potentially help lower your car insurance rates. They include the following:
• Shop around for the best rate
Shopping around is by far the easiest way to find an insurance company that offers an affordable auto insurance rate. You can get the best and most competitive rate when you shop around and compare quotes.
The rule is: don’t just settle for the first insurance company you come across. There are several insurance companies that offer auto insurance; review policy terms and prices to know which one best suits your budget and needs.
Auto insurance rates vary significantly across insurance companies; if you don’t shop around, you’ll likely miss the opportunity to save on your insurance policy.
• Take advantage of car insurance discounts
There is no harm in asking your insurance provider which discounts you are eligible for. Most certainly, there would be discounts that are available for you to utilize.
Most insurance companies offer a wide range of discounts, such as multi-car discounts, vehicle safety discounts, new car discounts, good driver discounts, and bundling discounts. You may qualify for any of these discounts; why not make use of them to save extra money?
• Raise your deductibles
One effective way to lower your car insurance rates is by reviewing and increasing your deductibles. Check whether the deductibles in your car insurance policy can be raised to save money.
It is entirely possible to reduce the cost of your car insurance by raising your deductibles. Since a higher deductible automatically means you get to pay a lower premium, it is worth it.
Bundle insurance policies
For those who have different types of insurance in place, bundling them together can potentially help reduce the cost of auto insurance. For instance, you can bundle your home and auto insurance together.
The majority of insurance companies offer discounts and lower premiums to policyholders who bundle both home and car insurance. Aside from bundling home and auto insurance policies, you can also bundle motorcycle and boat insurance.
• Drive a car with low repair cost
This is also one of the ways through which policyholders can lower their car insurance rates. If you intend on replacing or getting a new car, it is advisable to select a car that has a low replacement or repair cost.
This is because certain cars are cheaper to insure than other models. Aside from that, most insurance companies also use the type of car you drive to set your auto insurance premiums. So, if you own an expensive car, you may likely be charged a higher premium.
• Boost your credit score
In addition to your age, type of car, driving record, and other factors, most auto insurance companies determine the rate of your car insurance based on your credit score.
It is believed that the lower the credit score, the higher the chances of filing an expensive claim. Hence, you may be charged higher premiums.
If you have a low credit score, you should employ ways by which it can be increased. If it is possible to raise your traditional credit score, your credit-based insurance score may also bounce back to life.
• Pay your premiums in full
If you are financially capable of paying your premiums in just one payment, you may be able to lower the rate of your car insurance.
Rather than making monthly payments on your auto insurance, consider paying your premiums at once if you have the capability to do that.
This is because many auto insurance companies offer discounts for policyholders who pay their premiums in one lump sum.
• Take a defensive driving course
In addition to all the aforementioned tips, taking a defensive driving lesson or course can help you save on your car insurance. Explore driving courses that you can take that will qualify you to receive discounts from your insurance provider.
There are several states where you can lower your car insurance rates just by completing a driving course approved by your insurance provider.
• Park your car in the garage
Cars that are parked in the streets or on a highway are more expensive to insure. There are certain car insurance companies that lower your insurance rates if you park your car at home or in a garage.
Most often than not, cars on the street are more likely to be stolen or damaged compared to cars parked in garages.
FAQs
What does car insurance not cover?
Your car insurance policy will not cover damages incurred if you drive for a commercial purpose. Also, most car insurance policies do not cover wear and tear, mechanical failure, acts of negligence, etc. Before purchasing auto insurance, ensure you have an understanding of what the policy covers and its exclusions.
Which car insurance company offers the lowest rate?
What may be the best rate for one person may not be the same for another. To get a lower rate on your car insurance, you can shop around and compare the prices offered by different insurance companies. Notwithstanding, according to CNBC, Geico has the most affordable auto insurance policies. Their annual premium is between $373 and $1,353.
