5 Ways to Lower your Car Insurance Premium
Car insurance premiums are getting more expensive every year, and you’re looking for a way to cut costs. You may be surprised that there are some ways you can lower your premium that you never thought of. Give these five things a shot and see how low you can get your monthly insurance cost.
1. Improve your Credit Score
It’s a little-known fact that your insurance provider uses your credit score to determine the price of your premium. Some states have made it an illegal practice, but many states still use your credit score to determine the likelihood that you’ll get in an accident. This is because some studies have shown links between a low credit score and instances of accidents. The higher your credit score, the lower your premium could be. You can check your state laws to see if you’re in one of the states that allows a credit-based insurance policy.
2. Shop Around
No matter what you’re buying, you need to shop around—even for car insurance. One company could have an extremely high price while another has the same benefits for half the cost. Keep in mind that while price is important, you need to compare policy details as well. A cheaper policy may or may not offer the same coverage as one that’s much more expensive. You can ask companies to match your current plan so you can be sure to get the same deductibles and coverages.
3. Ask for Higher Deductibles
Higher deductibles cause you to pay more if you were to get in an accident or file a claim. Since you’re paying more, that means that the insurance company is paying less—meaning they’ll charge you a lower premium. Asking for deductibles of over $1,000 or more can make you see significant discounts on your monthly insurance bill.
4. Seek Out Discounts
Insurance companies don’t come out and tell you about discounts you could be receiving. In fact, it can be hard to cajole the representative to tell you the discounts for which you’re eligible. You could be surprised how much money you’d save with a safe driver or good student discount. Some companies also allow you to use a camera or tracking equipment to determine if you drive safely for even deeper discounts on your monthly bill. Some of the most common discounts you can ask about are safe-driver, defensive driver, and low mileage.
5. Compare Insurance Before Buying a Car
Purchasing a vehicle is a big decision and it can take days or weeks for you to decide which car to buy, but you should always talk to your insurance company before purchasing. Some cars cost more to insure than others, meaning if you’re on the fence between two choices, your insurance company can help you decide by telling you which would be cheaper. Plus, it’s good to know how much a car will cost before you purchase it and realize your insurance goes up hundreds of dollars.