Auto insurance can be quite costly, there are many factors involved that determine your yearly auto insurance rate such as the type of vehicle being insured, the age of the driver, the number of years the driver has held a license and the type of insurance policy that is chosen.
There are other factors involved that may help to lower auto insurance rates, highlighted here you will find 10 tips on how to lower auto insurance rates.
Request a Higher Deductible
Deductibles are the amount you pay upfront when an accident occurs before the insurance company pays for the claim. The benefit of a higher deductible is that your yearly auto insurance rate goes down quite substantially. However the drawback is if you do file a claim, the upfront amount will be higher. Most people go under the assumption that they will not have a claim and even if they do, it will be very infrequently so a higher deductible is typically a good way to go to lower auto insurance rates.
Shop for Rates and Keep Shopping
It cannot be stated enough that comparison shopping for a good auto insurance rate is essential. Insurance companies vary greatly and even if multiple companies give a higher auto insurance rate than you anticipated, do not give up. You still may be able to find a better auto insurance rate, keep shopping around until you feel you have exhausted all avenues.
Purchase Multiple Insurance Policies Together
We purchased our auto insurance and our home insurance from the same company, we received quite a discount because we did obtain multiple policies. It is important to ask insurance companies what type of multiple policy discount they offer and see which insurance company offers the best deal on multiple policies.
Maintain a Good Driving Record
When you feel the need to speed or not feeling that following the driving rules are important, remember that it can hit you hard in the pocket book and slow down and follow the rules of the road. A clean driving record is one of the best ways to lower auto insurance rates and it is typically one of the first questions an insurance agent will ask about when determining the yearly auto insurance rate.
Good Credit is Important
Having established credit and good credit is now a factor that many insurance companies look at. If you are just starting out, really make an effort to keep your credit as good as possible and if your credit is not as good as it could be, try the best you can to improve it. It is not easy but remember that good credit can save you money in the long run.
Consider the Amount of Coverage Needed
If you have a car that is paid off and is older, do you really need to keep full coverage on the car? Take a look at what the vehicle is worth and what you are paying out in yearly auto insurance premiums, it may be financially beneficial to drop some of the coverage.
Compare Insurance Costs of Vehicles
If you are considering purchasing a new or used vehicle, call your insurance agent first and get a quote on what the yearly auto insurance rate would be. This simple and easy tip for lower auto insurance rates can be put into place before you even make a purchase. If the yearly auto insurance rate is too high, you may want to consider a different vehicle.
Take a Driver’s Education Course
When my daughter first started driving, the auto insurance rate was sky high but our insurance agent informed me that if my daughter took a driver’s education course through the insurance company and all lessons were on DVD and could be watched at home, it would lower auto insurance rates for us quite a bit. Of course, I had my daughter take the course, it was relatively painless and did help to lower our auto insurance rates.
Inquire about Low Miles Discount
Our insurance agent has given us a discount on our auto insurance because I do not drive very far to work nor do I put many miles on the car. Many insurance companies will ask how many miles you commute a day and if it is relatively low miles, it is very possible to lower car insurance rates.
Consider an Anti-Theft Device
Depending on the type of car you own and the insurance agency you are considering, a possible way to lower car insurance is by installing an anti-theft device. It is important to check on the type of discounts that are offered through insurance companies for the device and then the costs of installing the anti-theft device. It may be beneficial in the long run and lower car insurance rates if the anti-theft device is installed in your car.
These tips for lowering car insurance rates are not difficult, it just takes some time invested and factors to be considered and you may well be on your way to lower auto insurance rates.