Insurance is a requirement for everyone on the road, and we’re all on the lookout for the best deals. Luckily, there are a few ways you can lower your car insurance premiums.
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[wptab name=”Higher Deductible”]
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Opt for a higher deductible
The most straightforward way to lower your insurance premiums is to request a higher deductible. Many insurance companies allow you to choose a low-premium high-deductible plan. However, this doesn’t necessarily get you off the hook completely. If you end up in an accident, you’ll have to pay more upfront before your insurance will kick in. If you end the year with a clean driving record, you’ll have saved yourself some money. However, you may end up paying a higher price tag if you do end up in an accident.
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[wptab name=”Reduce Coverage”]
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Reduce your coverage
Make sure you’re not paying for more coverage than you need. Evaluate your necessary coverage based on the value of your car, factoring in depreciation. If you’re driving a car worth less than 10 times your premium, your insurance may be costing you more than your vehicle is actually worth. Consider lowering or dropping extra coverage like collision on vehicles on their last leg if the ends don’t justify the means.
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[wptab name=”Check Your Credit”]
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Pay attention to your credit score
Your car insurance rates are partially determined by your credit score. This means that if your credit score is struggling, your car insurance premiums are likely to skyrocket. According to Mike Barry, the vice president of media relations at the Insurance Information Institute, insurance companies claim there is a relationship between your credit score and your risk behind the wheel. “Insurers will say their studies show that if you’re responsible in your personal life, you’re less likely to file claims,” Barry says. Keep your credit score in check by making sure all of your bills are paid on time and avoid opening credit cards you don’t need.
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[wptab name=”Utilize Discounts”]
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See if you qualify for additional discounts
Many insurance companies offer incentives for customers based on a variety of criteria. One example? Low-mileage discounts. Insurance companies often offer discounts to customers who drive less than the average driver. If you’re not racking up a ton of miles on your vehicle, insurance companies see you as less likely to get into an accident. Discounts are also offered for other things such as having a student out of state, taking a defensive driving course, or even having a vehicle with anti-theft technologies.
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[wptab name=”Drive Safely”]
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Drive safely
Accidents are known for skyrocketing your insurance premiums, but your rates can actually rise for something as simple as a speeding ticket. Your insurance company will rate your rates if they consider you to be “high risk,” so don’t give them a reason to be worried. If you’re caught speeding, running red lights, or you have any other moving violations, you’ll not only have to pay a ticket, but you’ll continue to pay that price in your premiums.
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Sources: Edmunds, Insurance Information Institute, Investopedia
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