5 Ways to Lower Car Insurance Costs
If you are like most people, the day-to-day expenses of your car insurance can be a bit overwhelming. Between rising deductibles and increasing premiums, it’s no wonder many Americans are looking for ways to reduce their car insurance costs. Fortunately, there are some things you can do to lower your insurance rates.
Get Multiple Quotes
You can lower the cost of your car insurance by comparing prices with several agencies. Contact online auto insurance services, or call your state’s insurance commission. Be aware that the law requires you to have a minimum amount of liability coverage specified in your state’s financial responsibility law. Most people don’t need to buy more protection than is required by law.
Buy Insurance Before Buying a Car
When you purchase a brand new or used vehicle, you should look into the cost of insurance. Auto insurance premiums differ according to a number of factors, such as the price of the car, how much it costs to repair it, and how likely it is to get stolen. Many insurers give discounts for certain features, such as anti-theft devices or airbags.
Increase Your Deductible
The deductible is the amount you pay out of pocket before your insurance policy kicks in. If you put in more money towards your deductible, you can save on your premiums. Before choosing a higher deductible, make sure you have enough money set aside in an emergency fund to pay it and your other expenses if you have a claim.
Reduce Coverage on Older Automobiles
Save money by avoiding collision and/or comprehensive insurance on a car worth less than ten times the premium. Your car’s value can be found by consulting car prices websites or your auto dealer or bank. Review your coverage periodically, and check to see if your car’s value has changed.
Maintain a Good Credit Score
Submitting a good credit report to insurers may help you qualify for lower auto insurance rates. Your credit rating, based partly on your payment history and outstanding debt, determines the risk that insurers consider when pricing a policy. Research also indicates that people who have a poor credit record are more likely to file claims. Safeguard your credit rating by paying your bills on time, getting only the credit you need, and keeping your balances low.