How to Lower Your Car Insurance Rates

Car insurance plays a vital role in keeping us safe from financial burdens due to accidents and mishaps. It’s a major reason why we put a huge emphasis on selecting the right insurance company and coverage. To do this, you need to shop around and evaluate your various options.

Affordable car insurance rates can be a bit challenging to find. However, using the tips in this article can help you lower your rates and save you money. Let’s begin.

3 Easy Ways to Lower Your Auto Insurance Premiums

1.     Have Multiple Vehicles on Your Policy

If you get a policy for one vehicle then you’ll likely be paying more for insurance. However, if you inquire about insuring multiple cars on your policy then the insurance company will give you a discount on your rates. The more vehicles you have under one policy, the better your rate will be.

Therefore, you can check with your insurance agent to see if you are eligible for a multi-car discount. Usually, if you want to get these discounts, the multiple drivers have to live together or have to be related by either blood or marriage.

However, know that if you insure a teen driver you will likely pay more. Luckily, there are discounts available for students, such as the good student discount!

2.     Get a Higher Deductible

When you choose an insurance policy you have to select a deductible. This is the amount you agree to pay upfront in the event of a claim. Generally, if you have a lower deductible, your annual premium will be higher.

Therefore, if you rarely file claims and are willing to pay more upfront, then it could be an option to opt for a higher deductible. You should always select an amount you’re comfortable paying.

You can discuss with your insurance agent to see if increasing your deductible is a wise option for you and your situation.

3.     Have a Good Credit Score

One of the things that can impact your car insurance rates is your credit score. This is why having a good credit rating is imperative, as it will directly affect your insurance rates. The reason why is your credit score indicates how reliable you are with paying your bills. Your insurer doesn’t want to worry about not getting paid.

You can improve your credit rating by paying your bills on time and eliminating any existing debt.

Additional Tips

Besides the above tips, you can also reduce your car insurance rates by:

Takeaway

Sometimes, finding good coverage at an affordable price can be difficult. However, if you shop around, select a higher deductible, have a good credit score, or insure more than one vehicle you can save some money.

Always ask your insurer about ways to save or if you’re eligible for any discounts.

 

 

 

 

 

Sources 

https://www.investopedia.com/articles/pf/08/car-insurance-costs.asp

https://www.forbes.com/advisor/car-insurance/tips-lower-car-insurance-costs/

https://www.iii.org/article/nine-ways-to-lower-your-auto-insurance-costs