Speedy Tips to Slash Your Auto Insurance Premiums
Almost all of us need to pay for auto insurance, which protects our vehicle in case of accidents, theft, and other possible incidents. But, car insurance premiums can be highly variable depending on the age of the driver, their driving record, and the type of car being insured. Paying less for these premiums can add up to a lot of cash in the long run and drivers can do a lot to pay less.
Evaluate Your Coverage Needs
Reviewing your existing coverage is one of the first steps toward reducing your auto insurance premiums. Other drivers are shelling out money for coverages they may not need, like collision or comprehensive coverages on cars long past the point of being worth more than the deductible. Evaluating how much your car is really worth and how much risk you are willing to take can help you tailor your coverage and end up paying less in premiums.
Shop Around for Better Rates
Because insurance rates vary so much from one company to another, shopping around is a key step in lowering premiums. The Insurance Information Institute suggests getting quotes from at least three different insurers to help you find the best rates1. Most insurance companies provide online tools that make it easy to compare policies and prices. Also, work with an independent agent who can quote several companies.
Take Advantage of Discounts
There are numerous discounts available from insurers that can lead to substantial reductions in premiums. For example, safe-driver and good-student discounts, as well as multi-policy discounts if you bundle auto insurance with home insurance. Of course, some companies offer discounts on vehicles with anti-theft devices as well as discounts for drivers who take defensive driving courses 2. Be sure to inquire with your insurer about any discounts and that you are making the most of them.
Improve Your Credit Score
Credit scores are one of the variables insurers consider to calculate premiums in many states. Insurance companies may offer lower rates if you have a higher credit score; insurers use credit information to assess how dependable you are likely to be as their customer. One way to achieve this is by paying your bills on time, decreasing your debt load, and fixing mistakes in your credit report3. These can pay off in your insurance rates over time.
Choose a Higher Deductible
Another way to reduce your premium is to choose a higher deductible. A deductible is the out of pocket amount before your insurance provides coverage. Higher deductible means higher risk in case of claim, but lower monthly premium. Just make sure you're able to pay the higher deductible in the event of an accident.
Keep Your Driving History Clean
Perhaps the most important factor in your auto insurance premiums is your driving record. Traffic congress or crashes and accidents can increase your rates at the same time a spotless riding report will earn you a large reduction. Additionally, clean driving records consisting of safe driving habits, including adhering to speed limits and not being distracted by your phone while driving, will keep records clean and your premiums lower over the years4.
If you want lower auto insurance premiums, you will have to be proactive and open to using different methods. You can save a lot on insurance premiums by assessing your coverage needs, shopping around for lower prices, utilizing discounts, enhancing your credit score, opting for a higher deductible, and driving without any violations. These suggestions will help you save but also get the appropriate coverage to protect yourself and your car.