Ways to lower your car insurance premiums
Depending on your driving record, your monthly car insurance premium can sometimes be as much as your monthly car note; and in case you were wondering, that isn’t a praiseworthy thing. Getting the best rates on car insurance is not something handed to you on a silver platter with a pretty bow on top, you have to be proactive in your research and in requesting additional deductions. Pay attention hard-core bargain hunters: there are nine proactive steps to take in lowering your auto insurance premiums.
Shop around for affordable car insurance rates
Many insurance companies offer one-stop comparison-shopping right on their site. For example, if you visit Progressive.com and input your details, Progressive fetches the rates from some of the best car insurance companies, giving you three to five other car insurance comparison quotes on demand. Weed through these quotes to help you find the most affordable car insurance premium payment.
Always factor in the true cost of ownership
One pitfall made by many consumers when purchasing a vehicle, is not shopping for car insurance price quotes beforehand. The true cost of ownership with any vehicle is, in large part, related to the car insurance premiums that go along with it. Many premiums are set based on make and model of a vehicle, in addition to its popularity among car thieves. The higher the likelihood for the vehicle is to be stolen, the higher the cost.
Increase your deductible
Your deductible is the percentage of repairs you pay, before the insurance kicks in, after an at-fault accident or damage; the lower the deductible, the higher the car insurance premiums. If your deductible is $200, consider raising it to $500 or $1,000 to reduce your premium. However, make sure that the deductible selected is one you could comfortably manage to pay after an accident. My advice is to put the difference of your payment between a higher deductible and lower one into savings; leave that money untouched so that it is readily available if needed. Call it, your “emergency fund”.
Do not carry comprehensive coverage on older cars
Comprehensive coverage helps pay for accident repairs or assists in paying off a vehicle balance in the event the car is totaled. Having complete coverage on a car over six years old doesn’t make sense. When the car insurance premium is one quarter of what the car is worth, downgrade to liability only.
Combined insurers
Having an automobile insurance policy issued from the same carrier as homeowner’s insurance policy, results in lower payments and premiums for both.
Keep a close eye on your credit report
When an insurance company provides a customer with a quote, his credit score plays a large role; the better your credit, the lower your premium. Individuals with FICO scores over 700 often enjoy lower rates, while consumers with lower scores pay higher rates. If you want to lower your car insurance premiums, work on improving your credit.
Maximize your mileage deduction
The average driver puts anywhere from 10,000 to 15,000 miles on his car in any given year. If you are able, cut your driving down to under 10,000 miles annually, and find yourself with yet another car insurance premium reduction.
Employer hookups
Sometimes employers have special relationships with insurance companies, allowing employees to apply for auto insurance plan at a reduced or group rate. Talk to your human resources department to inquire about these special types of relationship discounts.
Remember, it’s all about the discounts
The better your driving record, the better your credit and the safer your vehicle the more discounts you qualify for. Avoiding accidents and speeding tickets are paramount factors here. Safe drivers enjoy more discounts. To maximize your safe driving discounts consider taking a driver education or defensive driving course every five years as a supplement to these other car insurance rate-slashing tips.
Car insurance: you have to have it, but you don’t have to overpay for it.