Reducing your car insurance premium puts money back in your wallet. There is a handful of reasons why your premium may be more expensive than others. You can’t control some factors, such as age and gender, but others are effective ways to lower your car insurance premium.
Dig for Discounts
All major auto insurers offer customers discounts based on their driving history, policy changes, and vehicle features. You could possibly save 25 percent by going paperless, switching to automatic payments, paying online, and paying up front instead of month by month. Look through your current insurer’s discounts to check if you’re receiving every deduction available.
Tip
A lot of insurers offer discounts for safer driving. Not only will this proactively make you a better driver, but it can also save you money.
Shop Around
All insurance companies charge different rates for the same coverage. The companies also handle the factors that produce your price differently. Gather quotes from two to three various insurers and decide which is the best policy for you.
Tip
Switch insurance companies every six to twelve months. The insurance industry is highly competitive, and this is a big way to reduce your premium.
Understand Your Coverage
Most people aren’t sure what insurance is vital to have when creating a policy. The basic types are:
- Liability
- Uninsured
- Comprehensive
- Collision
- Personal Injury and Medical Payment
Understanding the different types of coverage allows you to make necessary cuts where you need to.
Insurance-Friendly Vehicle
The more safety features your vehicle has, the lower your car insurance premium. Most cars, trucks, and vans come packed with standard safety features.
Specific vehicles have higher theft rates than others. These automobiles are more expensive to insure than others.
Tip
Before buying a new car, truck, or van, get an auto insurance quote. Then determine if the automobile still fits in your budget.
Consider Your City
The neighborhood, city, and town where you live will directly affect your premium. Remember this if you’re gearing up for a move soon or actively searching. Neighborhoods that are less populated place you at a lower risk for theft, accidents, and collisions.
