You may be astounded at the amount of money that you pay on automobile insurance every month, but you may feel trapped into the price by the legality of having to carry this insurance in your state, however, you do not have to be tied to very high premiums just because they were quoted to you. There are ways that you can lower your car insurance premiums and make owning and driving your vehicle more affordable. Some tips only require a quick call to your insurer and are the easiest ways to lower your monthly premium but be sure to keep these ideas in mind the next time you go shopping for a new car. Also, always ask your insurance agent about any additional tips for making your insurance reflect your household budget. Your insurance agent is there to help you get the coverage you need for a price that you can afford.
Increase Your Deductible
The fastest way to lower your car insurance cost is to raise your deductible. This usually only requires a quick call to your agent or to the main offices of your insurance company. However, you should be aware that an accident will cost you more out-of-pocket with a high deductible. This may be worth it if you have a large enough emergency fund hidden away in your bank account that could cover you should a major accident occur.
Find the Right Car
While it may seem surprising, the car you drive can affect your insurance rates. This is due to a variety of factors, including the age of the car, the number of miles on it, the type of fuel it takes and its make and model. Cars that have been shown to be in more accidents or to require more costly repairs than similar options do typically carry high rates.
Improve Your Credit Score
While this is a tip that cannot be undertaken overnight, it is certainly worth considering. Your insurance company may check your credit score and offer you a premium that takes your perceived financial risk into account. Keep in mind that this is only allowed in some states, however, a long record of on-time payments and a low credit-to-debt ratio are the best ways that you can achieve a good or excellent credit rating.
Ask about Discounts
Your insurance agent may have loads of discounts that are applicable to you but that may not yet be on your insurance policy. For example, you could receive a good driver discount if you have not been in an accident in a certain number of years and have not received any driving tickets. There are also often discounts for taking certain driving courses, for low mileage per year or for having a car with certain safety features, such as an anti-theft system.
Bundle Insurance
Although it may sound similar to many commercials you have heard over the years, bundling your insurance packages can score you major discounts. If you insure multiple cars under one policy, you may qualify for a multi-line discount. You can also get discounts on all types of insurance by getting home, auto and life insurance policies from the same company.