For many, the world of car insurance can be costly and hard to navigate. Since it’s illegal to drive without coverage, it’s helpful to make the best of car insurance by being aware of the many ways to lessen the burden. Here are our top 20 tips and tricks that may be helpful to lower car insurance when insuring your vehicle:
1. Get Price Quotes From Many Insurance Providers
Research the prices for coverage different providers are offering for your vehicle. Although it can be time consuming, shopping around is necessary to get the best price available.
2. Get All Your Insurance From The Same Place
Many insurance providers offer discounts to customers who take out more than one type of policy. For example, it may be cheaper to get car insurance and health insurance from the same provider.
3. Shop For Cars With Insurance In Mind
Insurance prices will vary between different types of cars (as well as different brands). Doing research ahead of time when shopping for a new car will allow you to make an informed decision.
4. Drive Less
Those who put less mileage on their cars may qualify for a discount. If you work from home or have a car that doesn’t get as much use as others, you may be able to insure it at a lower cost.
5. Install Anti-Theft Devices
Cars with anti-theft devices installed are seen as less of a risk to insurance providers. Installing these devices may lower car insurance significantly depending on your policy.
6. Find Out About Safety Discounts
In addition to offering discounts for anti-theft devices, certain providers will offer lower rates to drivers whose cars come with safety equipment, which includes features like automatic seatbelts and airbags.
7. Learn About Group Discounts
Some providers offer discounts to people who get insurance with a group. Finding out if your employer (or any organizations you may belong to) has a program like this may lower car insurance.
8. Pay Premiums All At Once
Paying your premium every six months or every year instead of monthly can help reduce or eliminate fees that can be incurred with monthly payments. It may seem like a large amount, but it may decrease your yearly insurance rates substantially.
9. Look Into Liability Insurance For Older Cars
If you own an older car, it may be a good option to reduce your coverage to liability only. Liability insurance covers only the other car involved in an accident, not yours, and might be a cheaper alternative for cars that aren’t driven frequently.
10. Research State Minimums
You may be paying more in insurance than your state requires – and insurance minimums are different in every state. When looking to reduce your coverage to the least amount required, this is important information to know.
11. Raise Your Deductible
One of the easiest (and fastest) ways to lower car insurance payments is to set a higher deductible. You’ll pay more to repair your car in case of an accident, but making this change will lower both the cost of your collision and comprehensive coverage.
12. Seek Out Discounts
Most insurance providers offer discounts that many policyholders aren’t aware of. Aside from safe driver discounts for people who have gone a set amount of time without an accident, there are also good student discounts available for teen drivers on your policy who meet a certain grade point average.
13. Take a Driver’s Ed Course
In addition to safe driver discounts, many insurance providers will give discounts to people who have taken driver’s education or defensive driving classes. This is especially helpful for families with new drivers, whose insurance is often most costly.
14. Keep Your Eyes Open for Deals
It doesn’t hurt to look for deals or discounts insurance companies or car manufacturers are running. Certain manufacturers will offer deals with insurance providers associated with them, and sometimes this means as much as a free year of insurance paid for by the manufacturer with the purchase of a new car.
15. Consider Insurance Prices when Moving
Insurance prices vary from location to location, and if you’re moving across the country or to a location with a lifestyle drastically different from the one you’re leaving, it may make a big impact on your policy. Rural areas often have the cheapest insurance premiums while cities tend to be more expensive.
16. Establish Good Credit
When calculating insurance costs, recently providers have begun taking credit scores into account. You may be eligible for a cheaper premium if you have a high credit score. If you don’t, working to raise your score may result in lower car insurance later.
17. Drop Coverage You Don’t Need
Upon a closer look into your policy, you may discover you’re paying for coverage you don’t need or you weren’t aware you had. Making sure your policy includes only the insurance that is necessary for your driving habits and car may lower your rates significantly.
18. Drive a Fuel Efficient Car
Purchasing a hybrid car or a car marked as fuel efficient may make you eligible for discounts with certain providers. Because you’re reducing the impact of your car on the environment, many eco-minded providers will reduce your premium in exchange.
19. Find Out if You’re Paying Double for Medical Coverage
If your car insurance policy includes medical coverage, it may not be necessary in addition to the health insurance policy you already have. Removing the medical coverage included with your car insurance in case of accident may lower car insurance substantially.
20. Don’t be Afraid to Negotiate
After price comparing rates among different providers, you may consider asking your current provider if lower rates can be matched or beat. Some providers are willing to negotiate rates with customers, new or long-time. It never hurts to ask.
With the proper time invested, it can be fairly simple to find lower car insurance for your vehicle. Though dealing with insurance can be stressful, reviewing your policy frequently and finding every possible discount are necessary in making car insurance more affordable.