You must have car insurance + Car insurance is expensive + You want to save money = A dilemma. How do you make this equation equal something you can afford? The answer may be here with these 10 quick ways to lower your car insurance premium:- Increase your deductible: When buying car insurance you will probably be given the option of at least three different deductibles. This is the money you pay in the event of an accident before the insurance money kicks in. If you are the type of person who can keep $1,000.00 or $1,500.00 in the bank, in case you have a claim, then you will be able to purchase an insurance policy with lower monthly premiums.
- Your Car: New cars are more expensive to insure than used cars. Certain models of cars are more expensive to insure than others are. Insurance companies will consider the power of the engine and potential speed at which it will be driven, built in safety features, such as side air bags and anti-lock brakes. A little up-front comparison-shopping when buying your car can save you money in premiums later.
- Driving Record: Young drivers need to be aware of this issue from the start. Drivers who have good driving records, no speeding tickets or other driving offences on their record, will have cheaper premium rates than those who have multiple tickets or driving violations.
- Accident Free: You’re a safe driver and should be rewarded for it. Many insurance companies will reduce premiums for loyal customers after 5 or 10 years of having no claims. Some will even drop the deductible for a first claim after a certain number of years. If your company does not have either of these options, you might want to switch to a company that does.
- Maintain a Good Credit History: Your driving record and claim record are not the only records car insurance companies look at these days. Your credit history is also important. If you have a poor credit history, you can expect higher car insurance premiums.
- Low Mileage Discounts: It makes sense, the fewer miles you drive, the less chance of getting in an accident. The odds are in favor of your insurance company not paying out a claim so they are willing to lower premiums for those drivers. If you car pool to work, you might want to ask your insurance agent if this option is available
- Bundling: Many companies offer decreased premiums for drivers who also carry their homeowners or renters’ insurance with them.
- Young Drivers: The hardest hit for insurance, young drivers have a chance through some companies, to complete the company curriculum for new drivers. This often includes reading a booklet of information, answering “test” questions, watching a video and signing a contract.
- Older/ Mature Drivers: After the age of 55, drivers can take the AARP sponsored “55 Alive” class. With a certificate of attendance presented to the insurance company, premiums will be reduced. In some states, insurance companies are actually required by law to reduce the insurance premium for those who have taken a driver improvement course.
- Shop Around: Insurance companies are like any other business. They’re out to make money. It is your job then, to be sure you are getting the service you want for the money you spend. Shop around, ask questions, and get several cost quotes to compare before making a final decision on your insurance.
When it comes to buying car insurance, there are many variables. Being aware of where you are with these issues will help you lower the cost of your premium while giving you the coverage you need.
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