Four Smart Ways to Obtain Lower Auto Insurance Premiums
Cars might be expensive, but your auto insurance doesn't have to leave
you broke. Many drivers search for useful ways to decrease their
spending by lowering their insurance premiums. Here are four
strategies that can be implemented to tame high insurance costs:
1. Shop for Auto Insurance Carefully
While many consumers shop carefully for household goods such as
clothing or grocery items, not everyone realizes that comparing
insurance companies and their policies can also offer significant
savings. Do you believe that your auto insurance premium is too high?
Consider investing some time into researching competitively priced
insurance rates in your area.
State insurance boards regulate insurance companies. In most states,
these agencies establish rules that control how insurers set their
rates. By carefully comparing different insurance policies and not
settling for the first reasonable one that they find, savvy shoppers
can discover bargains. It pays to read the fine print when selecting
2. Accept a Higher Deductible
One way to pay a lesser premium may involve selecting a higher
deductible. Keep in mind, however, that taking this step will require
you to pay more out-of-pocket if you ever do become involved in an
auto accident while driving. The policy deductible represents the sum
paid by an insured towards a covered expense. For example, if you
obtain liability insurance for $100,000, then you may have a choice
whether to pay a $500 or a $1,500 deductible. If you can afford to pay
the larger deductible amount, you'll likely benefit from a reduced
3. Improve Your Driving Record
Working to improve your driving record may also offer insurance
premium relief. Many insurance companies reward safe drivers with
lower premiums. Companies can afford to take this step because these
individuals typically carry less risk of causing auto accidents.
This tip, however, is not one that can be done overnight. Improving
your driving record usually requires some time to accomplish. Consider
speaking with your insurance agent about this plan and look up the
names of insurance companies in your state who reward safe drivers
with reduced premiums. Make improving your driving record one of your
top long-term goals for the next five to ten years.
4. Take a Voluntary Defensive Driving Course
Finally, some insurance companies offer discounts or rebates to policy
holders who enroll in approved defensive driving courses. You'll want
to check with your insurance company in advance to ensure that you
will receive credit for completing a particular driving class.
Defensive driving courses are investments that pay for themselves
because not only can they help lower your insurance premium, but they
can also help you improve your driving skills. If available in your
state, they could lead to useful financial savings.
Depending upon your state of residence, insurance company, and your
driving record, you may discover significant cost savings when you
implement some of these methods to lower high insurance premiums.
Taking steps to search for competitive auto insurance rates, accepting
a higher deductible, developing a better driving record, and
completing a voluntary defensive driving course can all lead to
reduced monthly insurance payments.