How to Lower Car Insurance Rates and Keep Premiums Down

How to Lower Car Insurance Rates and Keep Premiums Down

Are you looking at your monthly budget and trying to find ways to save money? Want to learn how to lower car insurance rates?

With the average household spending about $119 a month for car insurance, it can get expensive, depending on where you live, what type of car you have, and your driving record. So, you could be paying even more than average.

Here are some tips on how to get lower rates on car insurance.

Shop Around

Like with any other service, prices can vary between companies, so it pays to do your research and shop around. You should get at least three insurance quotes either online or through an agency. Independent agencies can quote multiple companies for you.

You want to make sure you get an insurance quote from reliable and financially stable insurance companies. This means you should check out the company reviews online.

You don’t want to just shop for price alone. Make sure when you compare the quotes that coverages are similar and that you have enough coverage if you or a family member is in an accident.

Increase Your Deductible 

Your deductible is how much money comes out of your pocket when you make an insurance claim. If you increase your deductible, your premium rates should be lower. Ask your agent about how to get a lower insurance rate with a higher deductible, and make sure you can pay that amount if you are in an accident.

Improve Your Credit Score

Studies indicate that drivers with higher credit scores tend to be more responsible drivers. This is why insurance companies use credit scores to help determine premiums. It helps them measure the risk.

By improving your credit score, you can save money on loans as well as your insurance.

Take a Defensive Driving Course

If your driving record isn’t the greatest, one of the quickest ways to help lower your insurance premium is to take a defensive driving course. You have to take and complete one recently for it to apply to your premium, so don’t think you can try to use driver’s ed.

You should ask your insurance agent before taking the course to make sure that the cost of the course doesn’t offset your insurance savings. It may still be worth considering if you can recoup your savings in the first year. After that initial cost, you should still get the discount each year.

Pick the Right Vehicle 

The make and model of the car matters for your insurance rates. Some of the best cars for low insurance rates are the more reliable sedans versus a sports car. If you are in the market for a new car, you may want to consult with an insurance agent to see how the premium fluctuates between vehicles.

This means you should choose vehicles with numerous safety features, affordable prices, and reasonable upkeep costs to help you save money in general. A smaller vehicle will most likely have a lower premium as well.

Take Advantage of Discounts

There are discounts out there for car insurance. If you are a good driver with a clean record, talk to an agent about a good driver discount. This is your reward for being accident-free and not having any traffic violations.

You should also consider bundling your home and auto policies with the same insurance company for another discount. You can do the same thing if you have a renters policy.

In addition, military members and seniors can get discounts. If you have a teen, there are also good student discounts to help lower costs.

Other car insurance discounts include:

  • Paperless billing (sign up online to reduce paper)
  • Hybrid or green vehicle discount
  • Government employees and retirees discount
  • Multiple vehicle discount (with the same insurance company)
  • Automatic payments discount
  • Pay annually for a discount
  • Long-time customer discount
  • Antitheft devices and safety features discount
  • Accident-free discount

There may also be other discounts available. If you don’t have a long commute to work, this could also get you a lower rate. Be sure to ask your insurance provider for additional discounts available.

Get the Coverage You Need

Auto insurance policies sometimes come with extras you don’t need. For example, you could probably skip the car rental coverage and roadside assistance.

When you get a quote, see if there are any extras you can remove, but don’t skimp on coverage.

Look Into Usage-Based Insurance 

If you don’t drive very often, you may be able to pay for what you need. Most companies offer discounts for those that drive under 10,000 miles a year.

Other companies may offer a base rate and pay per mile after that. These discounts could save you a lot of money if you don’t drive often.

Drive Safely 

To keep your lower rates, you need to drive safely. Even though this may be obvious, it’s the biggest way to keep your insurance rates down. Insurance companies will regularly check your driving record for traffic tickets or accidents.

As you get points on your license, your rates will go up. It’s best to be smart and drive smart. Avoid running red lights, speeding, and driving recklessly.

If you do get a ticket, take advantage of a defensive driving class like mentioned above.

Ask Your Agent How to Lower Car Insurance Rates Today

By following these tips you may be able to lower your car insurance rates. The best ways to lower these rates include shopping around, asking about discounts, picking the right vehicle, improving your credit score, and getting only the coverage you need. Ask your agent how to lower car insurance rates.

Want to save more money? Check out more money-saving advice by exploring our site.