Having adequate car insurance coverage is a necessary investment but can often have a big impact on your budget. Luckily, car insurance rates can vary drastically as they are determined by a number of factors. Here are a few tips that can help lower your insurance costs while keeping the quality of coverage in mind.
12 Tips to Lower Your Auto Insurance Rates
Shop Around
Prices vary for the same level of car insurance coverage from company to company so it can pay to shop around. While it might be easy to go with the cheapest policy you find, it’s important to make sure you’re getting the coverage you need while at an affordable price.
Consider Bundling Your Insurance
An easy and common way to save money on insurance is by bundling. Bundling is going through one carrier for more than one type of insurance. Whether you also need home insurance or have another mode of transportation to insure, bundling your coverage can typically help you save money.
Insure Multiple Cars Under Same Auto Insurance Policy
Car insurance companies generally offer a bulk rate for insuring multiple cars under one policy. Whether your spouse or a child have vehicles to insure, it can be beneficial to see if your carrier offers discounts for insuring more than one car.
Increase Your Auto Insurance Deductible
Your deductible is what you pay out-of-pocket before your coverage kicks in, and oftentimes, the higher the deductible, the lower your premium is.
Reduce or Remove Optional Coverages
If you have an older or more rundown car, you may consider dropping collision and comprehensive coverage, which pay for damage to your vehicle. If your car is worth less than your deductible plus the amount you pay for coverage annually, it could be time to drop collision and comprehensive coverage.
List Your Vehicle’s Safety Features
Cars with built-in safety features such as airbags and antilock brakes may help you qualify for lower car insurance premiums.
Consider Usage-Based Car Insurance Apps
Usage-based car insurance apps, like Nationwide Smartride and Progressive Snapshot, are able to track driving behavior and often provide discounts for safe driving practices.
Keep Up With Car Maintenance
When it comes to your car, little maintenance oversights can turn into costly repairs before you know it. Keeping up with basic maintenance can prevent car issues from negatively affecting your car’s performance and value, which can help you save on insurance in the long run.
Maintain Good Credit History
Credit scores are one of the many factors that can have an impact on your car insurance rates. Having a good credit score shows your ability to pay bills on time, repay borrowed money and are less likely to need to file a claim. While you can’t be denied car insurance because of a low credit score, you could benefit from discounts and better rates if your credit score is in good or great standing.
Research Car Insurance Rates
Car insurance rates are based on broad categories of drivers and then are further modified based on individual risk factors. To make sure you’re getting the best rate available to you, it’s important to understand the various factors that can influence your car insurance rates.
Take a Defensive Driving Course
Some auto insurance companies offer discounts for drivers who complete a defensive driving course at an accredited institution.
Enroll Your Young Drivers in a Drivers Ed Course
Young or new drivers can be the most expensive to insure. Not only do insurance companies offer discounts for completing drivers ed courses, but your young driver will also learn valuable driving habits.
Let SelectQuote Help You Find Affordable Car Insurance
Many people end up choosing an insurer quickly after purchasing their vehicle and without looking at the details of their auto insurance policy. This could be leaving money on the table, but by working with SelectQuote, we can help you compare rates from some of the most trusted carriers and find you affordable car insurance in just minutes.
