Looking to save money on your car insurance? If so, you're not alone. The average driver spends a little over $2,000 per year on car insurance, and that can be a big chunk of change. Luckily, there are ways to lower your car insurance costs without lowering your coverage. From shopping around to taking advantage of discounts, read on to see how you can put some extra cash back into your pocket.
Shop Around for the Best Rates
While it can take some time, shopping around for the best rates is one of the most effective ways to lower your car insurance premiums (your monthly cost). Companies use different formulas to calculate rates, so you could save hundreds of dollars by comparing quotes from multiple companies. You may find that one company offers much lower rates than the others and possibly even better coverage.
Ask About Discounts
Many insurers offer discounts for certain factors, such as being a student, having a clean driving record and lower mileage driving. Before you decide on an insurance policy, make sure you ask about any discounts that may apply to you. If you already have a policy, connect with your insurer to see what they offer. Additionally, many companies also offer discounts when you buy multiple policies from them, like renters or homeowners insurance.
Drive Safely to Avoid Accidents and Traffic Violations
Staying accident-free is the best way to keep your insurance premiums low. If you can avoid getting into accidents, you will be viewed as a safe driver by insurers and could even qualify for discounts. If you already have an accident on record, try to go several years without any further incidents. You also want to avoid getting traffic tickets, as this can lead to a higher monthly premium on your insurance and cost you more out of pocket to deal with the ticket.
Take a Defensive Driving Course
Defensive driving courses can help you improve your skills behind the wheel and could also qualify you for discounts on your car insurance. These classes usually cover defensive driving skills, accident prevention methods and state laws that relate to safe driving. Most insurers offer discounts for drivers who have taken such courses, so make sure to ask your insurer if they offer such a discount and what requirements need to be met.
Consider Raising Your Deductible
One of the easiest ways to lower your car insurance is by raising your deductible, the amount you pay out of pocket before your insurer will cover the rest. The higher the deductible, the lower your premium will be. However, it's important to note that if you do get into an accident, you will have to pay for a larger amount of repairs out of pocket. Make sure you choose a deductible amount that you can afford and feel comfortable with.
Maintain a Good Credit Score
Having good credit can help you save on car insurance. Insurers often use your credit score to figure out the cost of your policy, since those with higher scores are less likely to file a claim and are considered lower-risk customers. So, it's important to review your credit report often and work on improving any areas where you may be lagging behind.
Consider Usage-Based Insurance
Usage-based insurance (UBI) is a type of policy that takes into account how much and when you drive. Insurance companies may offer discounts for low-mileage drivers or those who do not use their cars often. UBI policies also typically come with an app that tracks your driving habits to determine whether you're eligible for certain discounts. This would be a good policy for you if you don't drive very often and can help you save money on premiums.
Get Rid of Unnecessary Coverage
If you're paying for more coverage than you need, it's time to reevaluate and get rid of any unnecessary coverage. For example, you may not need rental car help or roadside assistance if you already have them through a credit card or other membership program. Additionally, if your vehicle is older, dropping collision and comprehensive coverage altogether could be an option to help you save.
Acceptance Has You Covered
At Acceptance Insurance, we are committed to finding you quality coverage at an affordable price. We offer a range of car insurance policies that include standard and optional coverage for collision, comprehensive, liability and more. We are here to provide the protection you need so that you can drive with confidence knowing that you have reliable coverage in place. Contact us today to see how we can help you save on your car insurance!
Common Questions About Auto Insurance Costs
If I Bundle My Auto Insurance with Other Types of Coverage, Will I Get A Discount?
Yes! Many insurers offer discounts for bundling policies together. For example, you may be able to save money by combining your car insurance policy with homeowners insurance or other types of coverage. Talk to your agent about the potential savings and whether it makes sense for your situation.
Do Older Cars Cost More to Insure?
Not necessarily. Insurers typically look at factors such as the make, model and age of the vehicle when determining premiums. Older cars are sometimes seen as lower risk because they tend to have fewer bells and whistles that could lead to an accident or higher repair costs in the event of an accident. However, this isn't always the case, so it's important to shop around and get quotes from multiple insurers.
Does My Credit Score Affect My Car Insurance Rate?
Yes. Insurers will often use your credit score as a factor when determining your premiums. Generally, people with higher credit scores tend to be viewed as less risky drivers and may qualify for lower rates on their car insurance policies.
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*Credit-based insurance score will impact your rate.