Auto insurance is an expense you will have as long as you have a car – there’s really no way to avoid this. But, there are a few things you can do to lower your car insurance premiums. Read on to know more.
Shop Around
Car insurance prices vary from one insurance company to the other, so it really helps to shop around. Make sure to reach out to at least 3 auto insurance companies and get their quotes. You can either call the company directly or check the quote on the Internet.
Check the Cost Before You Buy a Car
We know this is easier said than done, but it’s a good idea to check the cost of the car insurance policy before you actually buy a car for yourself. Keep in mind that some cars are actually more expensive to insure than others. So, if you are on a budget, opt for a compact hatchback instead of an SUV to save money on auto insurance.
Opt for A Higher Deductible
This is certainly not for everybody. The deductible is that sum of money that you are responsible for paying when you file a claim. You will need to pay the deductible first, and your insurance policy will cover the remainder of the expenses. The lower your deductible is, the better your claim payout will be, but you’ll need to pay a higher premium, and vice versa.
Reduce Your Coverage if You Have an Older Car
If your car is quite old, consider dropping the comprehensive insurance coverage. This is an especially good idea if your car’s value amounts to less than 10 times the premium. It’s also a good idea to review your coverage at the time of renewing your auto insurance policy to make sure your coverage needs haven’t changed.
Maintain a Good Credit Score
A positive credit score can reduce your insurance costs by a lot. Many insurance providers use your credit information when determining the price of your auto insurance policy. This is because auto insurance companies think people who have good credit scores have fewer claims. True or not, it really does pay to have a good credit score.
In addition, make sure to ask your insurance provider if you qualify for any discounts. If the insurance company doesn’t offer you any discounts, consider checking with other insurers in the area.
