How to Lower Car Insurance Rates

In most states, car owners are mandatorily required to have auto insurance. Given that this is likely to be a recurring expense as long as you have a car, it’s important that you know what you can do to bring down the premium. Here are our tips:

Compare Auto Insurance Premiums Online

 In order to get the lowest premium, it is vital that you compare online quotes from different insurance companies. It is best if you compare the quotes of at least 3 different insurers and select the policy with the lowest cost (without compromising on the coverage).

Bundle Multiple Insurance Policies

Buying multiple insurance policies from the same insurer will likely prove cheaper than buying different policies from different companies. So, you could, say, bundle your home insurance and auto insurance policy.

Check for Discounts

 Insurance companies offer a range of discounts. And, some discounts are unique to certain companies. For instance, Geico offers a discount of  40% if your car has a full-front-seat airbag. Keep in mind that insurance companies may not advertise these discounts, so make sure to ask whether you are eligible for any discounts.

Increase Your Deductible

 If car owners opt for increased coverage, the overall premiums will reduce. But, keep in mind that you will need to shell out additional money at the time of a claim – only opt for an increased deductible if you can afford to make this payment.

Improve Your Credit Score

 Your credit score has an effect on our insurance premium. So, try to work on improving your score. While this is not something you can do overnight, your premium will reduce as your credit score increases.

Maintain a Safe Driving Record

 Being a safe driver is the best way to keep premiums lower. So, avoid traffic violations like speeding, jumping signals, and DUI/DWIs to keep your premium low.

Pay the Premium in Advance

Paying full premiums in advance can save policyholders some money. Make sure to check if the insurance company offers an incentive if you pay the premium in advance.

Avoid Getting Full Coverage for Older Cars

If your car is older than 10 years, getting full coverage is really not necessary. Since your car’s value would have diminished over time, getting a full-coverage policy will lead to you overpaying for coverage you don’t need.