Everything has become more expensive recently, and auto insurance policies are no exception. If you’re frustrated with your car insurance costs, don’t worry. You’re not stuck with those rates. You may be able to bring your car insurance premiums down with a few tricks.
Try these tips for how to lower car insurance premiums.
1. Shop Around and Compare Quotes
Even if you think you’re getting a good deal on your current insurance policy, it’s worth shopping around and comparing quotes from other insurance providers. That’s the only way to make sure you’re taking advantage of any insurance discounts and not overpaying for your coverage.
Get quotes from several different insurance providers and compare what they offer. You may be surprised how much you can save by switching to a different plan or company.
2. Raise Your Deductibles
One key to how to get lower car insurance rates is to look at your deductible options. Generally, raising your deductibles will mean lower premium costs.
Just remember that if you raise your deductibles, you will have to pay more if you make a claim against your insurance. Try to find a balance between lowering your premiums and not making your deductibles so high you can’t afford them if you get in an accident.
3. Improve Your Credit Score
Insurance companies weigh people’s credit histories when they’re setting premiums. Improving your credit score by paying down debt and making payments on time may help you reduce your car insurance costs.
4. Ask About Available Discounts
Consider reaching out to your insurance company and asking if they have any available discounts. You might currently qualify for some discounts without even realizing it.
For example, you can often get a good driver discount if you’re a safe driver with a clean driving history. Or your insurance company might recommend taking action, such as completing a defensive driving course, to unlock more discounts.
5. Consider Usage-Based or Pay-Per-Mile Policies
If you don’t drive your car very often or far, you may be able to save money with pay-per-mile policies. These plans cost a lower flat rate plus a small additional fee for each mile you drive.
Another option is usage-based insurance, which adjusts your rates based on your driving habits. You will generally need to install a device in your vehicle or use a smartphone app that tracks your driving with these plans.
6. Avoid Unnecessary Coverages
Any insurance coverage you don’t need is just making premiums higher. Review the car insurance requirements and evaluate the optional coverage you have. If you don’t think you’re getting enough value from these optional insurance plans, like collision coverage, take them off your policy to save money.
7. Regularly Review and Update Your Policy
Insurance rates change frequently, so it’s worth regularly reviewing and updating your policy. Aim to do a review once per year.
Check to make sure you’re only paying for coverage that you actually need. For example, if your car is worth less than a few thousand dollars, it may no longer be worth paying for collision coverage.
If you have comprehensive coverage, consider installing an anti-theft system or device. Companies sometimes offer discounts on comprehensive insurance when your vehicle has anti-theft devices because they lower your risk of needing to make a claim.
8. Analyze Insurance Costs When Purchasing a New Car
Purchasing a new car is the perfect time to reevaluate your insurance and consider switching to a different insurer or plan. Since cars depreciate in value over time, you generally need the most coverage when you first buy them. That’s also when your insurance premiums are highest.
Think about how the make and model of the vehicle you choose affects your rates. Generally, more valuable vehicles have more expensive liability coverage and other auto insurance costs. It’s worth comparing your options to try to find the best deal.
9. Explore Group Insurance Plans
Group insurance plans are when groups of people, often employees of a company or members of an organization, come together to buy insurance. The insurance provider evaluates the group’s risk together, which means you may be able to get lower premiums in group insurance plans than with individual insurance.
See if your employer or other organizations you belong to offer group car insurance to help you save money.
10. Switch to Online Billing and Payments for Discounts
Insurance providers often offer discounts when you sign up for online billing and automatic payments. With these features enabled, the insurance company doesn’t have to worry about the cost of mailing you paper bills or going after you for missed payments if you don’t pay your bills on time. They pass some of those savings on to you by reducing your insurance rate.
Discover the Best Quotes
Of all these tips on how to lower car insurance premiums, start with shopping around and comparing your options. That’s the only way to know whether you can get a better deal through other insurance providers.
Searching for insurance quotes doesn’t have to be tedious and time-consuming, either. With EverQuote, you can see a comparison of your personalized insurance options in just a few minutes, making it easy to find the right car insurance for your needs at the right rates. Get your free custom comparison today.