Car insurance should not be optional. You need to protect yourself and your bank account when you sit behind the wheel. What many seem to be struggling with are the auto insurance rates, which is the main reason many people don’t even get the insurance in the first place.
To prevent that from happening, we’ve decided to go out and find out all the different ways for lowering the rates. So, without wasting any more of your time – let’s check out some tips for lowering the auto insurance rates.
1. Bundle Your Car Insurance
You’ve probably heard this phrase many times during the commercial break. Well, it is not a gimmick – it’s the real deal. If you have the opportunity to do so, take advantage of the multi-vehicle discount. If you are a family man or a woman, and you have the chance to bundle the auto insurance for several vehicles under your name – do it.
This is a guaranteed way to save money on rates. A car insurance company will offer you a significant discount if you bring them work. Keep in mind, bundling your car insurance isn’t always an option. Getting the multi-car deal can only work for people that live together and are either married or related to each other.
2. Choose The Right Coverage
As you already know, the most significant factor in determining an auto insurance rate is the type of coverage you’re receiving. The coverage is usually the biggest, most important factor, so it is vital to strike a good balance between premium protection and not paying a fee for “unnecessary protection”.
However, you do have to be careful when tinkering with the coverage. For instance, if you choose a high deductible plan – your coverage might not be sufficient for you, and you might end up paying a lot from your own pocket in case you ever have to make a claim. So, try and find the perfect coverage – the one that fits your needs, isn’t expensive, but still protects you. Pretty hard, right?
3. Make Sure You Have The Right Car
While it is improbable that you’re about to switch your car in order to get a better car insurance rate – it would be irresponsible of us to mention this. The type of car you’re driving does affect your premiums, so if you can do something about it – do it!
Let’s say you’re retired, and you just want a car to occasionally drive around, maybe visit your family and friends etc. At that point, do you really still need that Porsche you’ve bought when you were 40? An expensive car won’t be cheap to ensure, so think about switching. Trade in your sports car for something cheaper, possibly with a better safety rating, and drive that. That will undoubtedly make your premiums drop.
4. Be A Safe Driver
According to Keller & Associates, an insurance company, being a driver with a spotless road record can get you up to a 25% discount. So, if you want better rates – drive safely.
As a rule of thumb, insurance providers will charge a higher premium if you have a history of driving violations. It’s simple, really. If you’re a reckless driver who is often in violation of the law and you have a history of drunk driving, getting into accidents, and so on – you’re a liability. The chances of those things happening again are high; therefore, an insurance company must protect its interests by charging you a higher fee.
Then again, this also means that if you have a spotless record – you’ll be able to get a great discount on your rates once you decide to insure your care.
5. Take A Defensive Driving Course
Sometimes, your road record is affected by a simple accident – maybe even not yours. If that is the case, you may have a chance to deduct some points from your driver’s licence by taking defensive driving, accident prevention or some other course.
This should help lower the premiums on its own, but sometimes, you could even have a spotless record and take a class – just to save a few bucks on the insurance. Keep in mind, though, not every insurance company will offer you a discount for taking a course, so make sure to check whether they do before you sign up for a course.
6. Look For A Better Deal
As we all know – different companies offer different deals. With that in mind, it is up to you to go out and find the best one. Nothing’s stopping you from snooping around for the best deal.
Now, we are not saying that cheaper is better – not even for your wallet. However, different insurance companies will offer you various deals, with different coverage and different benefits, and it is up to you to find the one that suits you best. It is perfectly within your rights to talk to a few agents before you make your decision. So, if you want the best deal – look for it.
7. Improve Your Credit Score
As is often the case, whenever there’s insurance and annual or monthly fees involved – a good credit score will get you a better deal. No matter what, you should try and keep your credit score as high as possible. Not only will you get a better deal on a mortgage, but as you can see, you will manage to strike a better deal when insuring your vehicle.
8. Drive Less – Pay Less
If you’re someone that isn’t on the road a lot – take advantage of it. Make the most of the situation instead of thinking you don’t need insurance since you’re rarely on the road. Most insurance providers will give you a discount if you don’t drive too much. This is known as a low-mileage discount and is a great way to save some money on premiums. So, if you really don’t drive a lot, check with your insurer and see if you qualify for this discount, and if you do – well, you know what to do.
There you have it. These are some of the best tips we can give you, and as you can see – all of them are pretty sound. Who knows, if you can bundle some of these tips together – you may even get an insurance company to pay you in instead of the other way around. All jokes aside, we hope you’ve found these tips helpful and are now on your way to review your auto insurance policy.