how to lower your car insurance
There are factors like age and gender which aren’t under you control that affect your Car Insurance rates, although they are other crucial factors that come into play in determining the auto insurance rate you will have for your vehicle. Meanwhile, you are probably going to be paying higher Car Insurance fees if you are driving a $500 clunker. But on a general view, they are some smart tips you need to know that will help you lower your car insurance rates, regardless of the type of car you are driving. so if you have the question
- How to lower your car insurance?
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5 Tips On How To Lower Car Insurance Rates
- Get some quotes
Different insurance companies offer different premium prices for their auto insurance services. Now to get this right, you will need to get some Insurance quotes from at least three to four different companies before deciding on the policy to go with. Many states in the United States provide valuable resources on their typical insurance premiums for different drivers and cars types, this allows you to get an idea of what is fair where you live. So if a quote appears to be too costly or too cheap, then you will have to make sure the policy is comparable to the other quotes, don’t forget to include the deductible and the amount of policy coverage.
Related: Guide to Auto Insurance
- Bundle your policies
you may get discount from many insurance companies as they offer discount if you buy more than one policy. To make this smarter, you can get your car insurance from the same company you got your home insurance from or you insure two cars in your household with the same provider.
If the above tips does not work, then you can obtain your auto insurance through an association you belong to like AARP, this also should be able to get you a reduced rate.
- Increase Your Deductible
Your insurance deductible is the amount of money you pay when making a claim and typically ranges from $0 to $1,500.
For instance, if you have a $50 deductible with your insurer and your car has a $500 in damage, you will pay that $50 while the insurance company pays $450.
In a general term, the higher your insurance deductible, the lower your premiums are.
What Is the Disadvantage of Increase Your Car Deductible?
The disadvantage of increasing your car insurance deductible is that it may be more expensive if you unfortunately get an accident. But then, it can save you a bundle on insurance premiums. While rates vary for different companies, going from a $50 deductible to a $1,000 could cut your premiums by half. So all you need to do in this case to be on a safer side is to be careful to avoid accident by all means.
- Drop the collision coverage
Also, it will be cost-effective to reduce the collision or comprehensive portion of your insurance policy if you drive an older vehicle. You can as well drop it altogether. If your auto insurance premium is less than 10 percent of the car’s actual value, then it may not be cost-effective to keep that part of your policy.
You can go to Kelley Blue Book to find the value of your car online, or you ask a car dealer or banker. This will go along way to help you reduce the rate of your auto insurance especially when you don’t have enough money.
- Reduce your risk Level
Reducing your insurance risk is another smart way to lower your car insurance rates since Insurance premiums are priced based on the risk you represent in making a future claim. Now, reducing the risk you represent from high to low will generally lower your premiums as the insurance company will have less worry as the possibilities of any future accident occurring.
The longer you go without an accident event or a traffic ticket, the lower your insurance premiums will be.
- Note: Your credit rating is also an important factor in determining the company’s view of how likely you are to make an insurance claim in many states, so try and improve your credit score to reduce your premiums, also, know it that these things typically take a few years before you see a significant reduction.
Reducing your risk in the short-term to reduce your premiums more quickly can be done in several ways. Some of them are;
- Parking your car in a garage at night.
- Installing an anti-theft/tracking device can reduce your risk of theft.
- Also taking a defensive driving course or using public transit for transportation during the week and reducing the number of miles you spend on the road could reduce your risk for getting into an accident. You can inquire from your insurance agent if these changes will affect your premiums.
Guess these tips helped? If you got some other tip on how to lower car insurance rates, kindly let us know in the comment section.