Auto insurance rates can vary widely from one driver to the next, and for some people, their insurance payments are almost as much as their car payments. Your car insurance rate isn’t completely out of your control, and there are certain things you can do if you’re looking to save money on your auto insurance. As you shop around for a new auto insurance rate, consider the following:
Maintain a good driving record
Even if your car insurance rate isn’t a concern, being a safe driver is always important. You will receive a better rate if you aren’t involved in any accidents and you don’t receive traffic citations. Of course, people don’t usually plan on getting into car accidents or receiving traffic citations. But it’s important for your own safety and for the safety of others on the road that you take all proper precautions and be as good of a driver as you possibly can. This means remaining fully alert and paying attention to everything around you, avoiding distractions (such as cell phones and text messages), and following the rules of the road. Not only can good driving habits help to keep you out of harm’s way, but they can help you to qualify for a better care insurance rate.
Get rid of any unnecessary coverage
If your car insurance rate seems a bit high, you may be paying for coverage that you don’t really need. Evaluate your current auto insurance plan and figure out what’s required, and what you could do without. If you have a much older car that isn’t worth much, for example, it may not be worth it to pay extra in case it gets totaled in an accident—you may better off sticking to just liability only. To learn more about what your different insurance options are, ask an insurance agent.
Work on your credit score
Did you know that your credit score could influence your car insurance rate? That’s just one more reason to work on improving your credit. If your credit score has improved drastically since you received your initial car insurance quote, it may be time to receive a new one. Don’t forget to shop around with different insurance carriers, too—you may receive a much better offer by switching.
Consider increasing your deductible
When selecting a car insurance plan, you may be able to choose a deductible amount, or the amount of money you’d need to pay out of pocket before auto insurance kicks in. You will usually have a higher premium with a lower deductible, and vice versa. If lowering your car insurance rate is a primary concern, ask your insurance carrier about your options and if it’s possible to raise your deductible in exchange for a lower premium.
Insure multiple cars/drivers
If you have more than one car or there are multiple drivers living in your household, you may be able to save on your premiums by bundling your various insurance policies into one single policy. If you haven’t already, ask your insurance carrier if you qualify for a lower rate by bundling your policies.
Consider the car
Are you in the market for a new car? As you make your selection, bear in mind that even the make and model of your vehicle can have an influence on your insurance rate. Some cars, statistically, may not be as safe as others, and car insurance carriers will often take this into consideration when offering you a quote. If your decision comes down to that family-friendly station wagon or the fast sports car, and saving money on your car insurance is important, you’ll usually want to opt for car with the better safety record.
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Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.