Your insurance premium will vary based on a number of factors, some of which are out of your control. However, there are some things you can do to keep your car insurance rates low.
In addition to the type of coverage you need, what you pay for insurance depends on several factors. These include your driving record, where you live, the type of car you drive, your age, your gender, your martial status and even your credit score, among others.
Still, there are a few things you can control to keep your car insurance rates low. Here are some tips for those looking to save money on their car insurance.
Shop Around Regularly to Compare Prices
This tip applies to those looking for an insurer and those who have an existing policy. With all of the different providers and levels of coverage available, it pays to shop around and compare prices from different car insurance companies.
Most experts recommend that you get price quotes from at least three different providers before making a decision. Keep in mind that you may also not want to make a decision based on price alone. Other factors, like their customer service and the way they handle claims, should be considered as well.
Those who have an existing policy should still comparison shop on a regular basis. Experts recommend that you do an annual rate check to make sure you're not overpaying. Because you can get multiple price quotes at once online, this shouldn't be too much of a hassle, either.
Always, Always, Always Ask about Discounts
Auto insurance companies offer up plenty of discounts. The only thing you need to do is ask your provider about which ones you may be eligible for. For example, insurers have been known to offer price breaks for customers who:
- Bundle their car insurance with other insurance policies.
- Insure multiple cars under one policy.
- Have a clean driving record over a period of time.
- Own a car with certain safety or anti-theft features.
- Are members of certain organizations or groups.
- Have taken a defensive driving course or a refresher drivers training course.
There are plenty of other discounts that your provider may offer as well. So, make sure to ask about them on a regular basis.
Increase Your Deductible to Lower Your Premium
A savings strategy that some policyholders like to utilize is increasing the amount of their deductibles, which lowers the amount of their monthly premiums. A deductible is the amount you have to pay out of pocket, before the insurance kicks in, when you file a claim.
This strategy may allow you to save money each and every month. Of course, the trade off is what happens when the time comes for you to file a claim. While your premium will be lower every month, the amount you have to come up with when filing a claim will be higher.
So, only go this route if you are positive that you'll have the money to cover the deductible in the event you file a claim. After all, the whole point of insurance is to make sure your finances aren't devastated due to an unforeseen event, such as totaling your car.
The Bottom Line
These tips can help you keep your car insurance rates low. Of course, the best way to do that is to always practice safe driving habits and obey all traffic laws. For instance, maintaining a clean driving record will always help you pay less for auto insurance.
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