Lower the Cost of Car Insurance with These Tips
Shopping for car insurance can be really tricky. You never really know what you're going to get and certainly don't want to end up paying more than you need too. Money saved from car insurance is money spent elsewhere, right?
With all the options out there, it's difficult to know where to start. Here are ten ways to lower the cost of car insurance.
The number one piece of advice anyone gives to lower the cost of car insurance is to shop around. Different companies charge different rates and just like buying anything else, it's important to know exactly what you want and need before you pay for it.
Most places determine your eligibility for lower rates depending on how high or low-risk you are as a customer. This will be explained further later, but the lower the risk you are the more likely you are to get a better deal.
This is a no-brainer for many drivers in general, but some places are very generous about lowering rates for drivers that are extra safe. This is because it makes it safer for those who are actually driving on the road. Driving safely on the road actually reduces car insurance because it shows that you have a good driving record and insurance companies love that.
A sound credit score is a good sign that you have your stuff together, your ducks in a row, and that you're ready to handle big payments like a down payment on a house or-say-a car insurance bill. Car insurance companies see this and offer lower premiums to those who are good at taking care of their credit. If you don't have good credit at the moment, there is always a new opportunity around every corner to make it better. The better the score, the more likely insurance companies will offer a better rate because they have evidence that you are responsible and trustworthy.
Making sure that your car is on the up and up as far as safety goes. It's a good idea to take a defensive driving course to ensure you're as safe as you can be on the road. Besides the obvious reason of keeping yourself and your loved ones safe, it also helps reduce the chances that an accident is your fault. Being the responsible party in an accident causes not only legal headaches but your insurance company won't be too happy about it either. Reduce that possibility and keep yourself safe by taking a defensive driving course.
You might want to enroll back in college if you want to lower your insurance premiums. Some insurance agencies favor college graduates from specific universities, so it would be wise to check in and see which ones are included. By graduating college, sending off your child to their respective school, or even keeping your grades up can reduce your rates. Not to mention that once you have a degree, your job prospects will open up for higher-paying positions.
Raising your deductible might be more helpful than you think. By using a savings account instead to save up for a deductible you can save possibly hundreds on your car insurance. Ask your current provider or look into a new one to see if you can raise your deductible and subsequently lower your monthly payment. Remember that the larger the deductible amount you agree to pay in case of an accident, the less your insurance will cost each month.
Many people now are choosing to decrease their commuting time or not take their cars to work at all. While there are several reasons such as preserving the environment or saving money on gas, moving closer to work or hopping on the next bus to work can actually lower your insurance rates. You can get low mileage discounts and the shorter your commute and the lower your auto insurance premium will be. Some insurance agencies offer a deal in which you only pay for the miles driven. More money back in your pocket.
Bundling insurance is a popular option. You can save money simply by keeping all of your insurance plans in one place. On top of that, there are some companies who really like adding more customers to their roster so if you bundle your insurance plans, like car and home, this can help lower your rates.
Not all cars are treated equally by insurance companies. This is due mostly to some vehicles being more prone to accidents than others or are structurally less safe. These are a few reasons why it's smart to consider purchasing a car that is known to be safe. Ask your insurance provider about the cars they can offer lower rates on.
It might not seem like an obvious benefit, but including your teenagers in your insurance plan might not be such a bad idea. Your teenager is going to want a car anyway, why not add them to the insurance plan? The insurance company will give you a better rate if you add your teen to your family plan than if they get a separate policy. You save money and your teenager can drive around in an insured car without any extra payments to worry about.
Searching for a car insurance company for you and your car is always a tough decision and you will always want to find the best deal around. Make sure that you are well informed about a decision this big. It will have a lasting impact on your life that in some cases may be irreversible.