Helpful Tips to Save Money on Car Insurance

Posted on | 11 Feb 2017 By Anita Gaal

If you drive a car, then in most states you are required to have insurance. Finding good, low cost car insurance can feel like a battle that you may never win. There are many considerations that insurance companies make when evaluating a potential customer for an insurance quote. Most insurance companies take into account several factors: credit history, prior accidents and traffic tickets, the age, model and make of the car, the driver’s age and mileage (and projected mileage), and the condition of the car (whether it is protected by environmental elements or not). While looking for car insurance, these are things to consider. If you have a newer car, or if you have more than one accident on your record, you can anticipate a higher insurance rate. Here are some tips that will help you to save money on your car insurance.

Increase Your Deductible

Making changes to your lifestyle can ultimately lower your rate and make you more aware of how your everyday choices affect your potential cost. If you already have car insurance and you’re looking to lower it, you can start by getting in touch with your insurance company to change your deductible. Increasing your deductible will lower your monthly rate considerably, but it is a risk that you should look into. This option may be more feasible particularly if you consider yourself a safe driver. This is a guaranteed quick and easy way to lower your monthly rate, but it comes at a disadvantage if you get into a car accident.

Drive Less & Care Your Car

You may also want to consider lowering your driving mileage. Insurance companies generally give lower rates to drivers who stay under 12,000 miles per year. If you can get significantly lower mileage than that, your rate will be reflectively cheaper. You can walk to places nearby instead of driving, carpool as often as possible, and make sure your car is in good working condition—get regular oil changes, routinely check tire pressure, and check your air filter. When your car is running properly, it will benefit your gas mileage, extend the life of your car, as well as lessen the possibility of getting into an accident.

Learn to Be a Sensible Driver

Being a mindful and aware driver sounds like a simple way to get a lower car insurance rate, but it is true; if you avoid accidents and tickets at all costs, your monthly rate will be significantly lower with a clean driving record. Many insurance companies call this the “good” or “safe driver discount”. There are many other discounts that insurance companies offer such as a low-mileage discount, and a student discount. In order to get the lowest monthly rate, you should get in touch with your insurance provider and ask what discounts they can offer on your policy. Specific insurance companies also offer in-car technology that monitors your driving habits; this is especially beneficial for drivers who have a clean driving record and tend to be the “safest” drivers.

Bundle Different Policies Together

Another thing you can do is bundle a homeowner’s policy with your car insurance. Some companies will offer a discounted rate for those who get both homeowner’s insurance and car insurance from them simultaneously. If you are a renter, the same applies for renter’s insurance. This is similar to buying a “package deal” at the grocery store—if you are a store member, usually the individual cost is lower when you buy multiple items. In addition to bundling policies, you should also look into your credit report. Believe it or not, many insurance companies also consider your credit score when assigning a rate. Making sure you stay up to date on your bills, staying within 10% of your credit limits, and watching your spending habits are good ways to not only get a cheaper insurance rate, but overall benefit your financial status.

Finally

Before you rush into buying a new car, make sure you get an insurance quote. Making the mistake of checking a potential rate after you buy a car is often a costly one—when you have a car loan, your rates are generally much higher. Stay current on insurance factors, and stay in touch with your insurance agent; they can help you make sure you get the lowest rate possible.