The best way to get cheaper car insurance is to compare offers from multiple providers and then switch to the insurer that offers the coverage you want at the cheapest rate. Other ways to get cheaper auto insurance include taking advantage of discounts, improving your driving, and improving your credit score.
10 Ways To Get Cheaper Car Insurance
1. Compare offers every 6-12 months.
Each auto insurance company calculates premiums slightly differently, so the quote you get from one company can easily be hundreds of dollars more expensive than another company. Getting quotes from multiple insurers each time you need to renew your policy can help you tell if you’re paying too much for the same amount of coverage.
2. Take advantage of discounts.
All major auto insurance companies offer various discounts that can save motorists up to 35% in some cases. For example, many insurers offer discounts for multiple policies, multiple cars, good student discounts, good driver discounts, and more.
3. Increase your deductible.
Increasing your deductible will lower your premium, but it’s important to choose a deductible that you can afford in an emergency. A car insurance deductible is an amount that you must pay out of pocket before your insurer covers the rest. Deductibles apply to various types of coverage, including collision and collision damage waivers.
4. Improve your credit score.
Insurance companies use credit-based insurance ratings where permitted by state law because studies have shown that these ratings are effective in indicating a driver’s likelihood of making a claim. Because insurance scores are based on credit information, increasing your credit score can help lower your rate over time.
5. Consider usage-based insurance.
Consumption-based insurance is a type of car insurance that calculates your premium based on your driving habits. Each company’s usage-based program is different, but most take into account your total mileage, braking effort, acceleration, and speed. These programs are ideal for safe drivers, especially those who don’t use their cars for long commutes or frequent trips.
6. Choose a car that is cheap to insure.
Cars that are particularly fast, powerful, and/or expensive to repair are among the most expensive cars to insure. Insurers also charge higher premiums for cars that are more likely to be stolen. Therefore, when you next buy a car, compare the insurance offers for different models in advance. And if your premiums are prohibitive right now, consider trading in your vehicle for a vehicle that is inexpensive to insure.
7. Take a defensive driving course.
Some states require insurance companies to give you a discount for taking a defensive driving course. While not required, insurers sometimes give a discount to encourage customers to improve their driving skills.
Unless your insurer lowers your premium just for taking a class, working on your driving skills will still pay off in the long run and help keep your bottom line clean. With that in mind, certain states also allow you to take a course to prevent driver’s license points from affecting your auto insurance rates.
8. Consider your coverage types and amounts.
All of the different types of auto insurance can make it difficult to determine exactly what’s worth paying for. At a minimum, you must meet your state’s requirements and also purchase any coverage your lender or landlord requires. But beyond that, you can weigh up whether each additional coverage option is worth the price.
For example, you may need to remove uninsured motorist accident insurance from your policy if you already have collision insurance. Or you no longer need coverage for the rental fee because you could borrow a family member’s car if needed.
9. Practice good driving habits.
Motoring offenses like speeding signal your insurer that you’re a high-risk driver, as do serious convictions like reckless driving. By driving safely you can protect yourself and keep your premium low. If you already have fines or culpable accidents in your certificate of good conduct, proceed cautiously from now on, because these only affect your rate for a few years.
10. Check out local and regional businesses.
Big auto insurance companies spend billions on advertising every year, but smaller insurers can offer the cheapest premiums in some cases. So when shopping, compare offers from companies of all sizes.
Auto insurance premiums are based on drivers’ risk factors and the types and limits of the coverage they choose.
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