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 insurance coverage.

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 insurance premium.

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.

Related Blog Posts

Road trips are a great way to bring your summer to an end. Whether you’re hitting the road with family or friends, finding the right trip for your crew is important. We’ve rounded up five great end-of-summer road trips for you!
In a perfect world, you would never need to carry an SR22 from your insurance provider, but we get it, accidents happen. There are certain violations that can cause the state to require you to carry an SR22 and finding an insurance company that understands the process is important.
Auto insurance provides people with a form of financial protection in case something unexpected and costly happens to their vehicle. Liability insurance is a legal requirement and some states require drivers to have both property damage liability and uninsured or underinsured motorist coverage. However, based on your location and personal driving needs, basic auto insurance coverage might not be enough. We previously covered everything you need to know about auto insurance so let’s talk about what will be covered by different types of insurance.
With temperatures rising and vacations coming up, it’s important to make sure your car is ready for the summer weather. Your vehicle will alert you for many issues like oil changes, tire pressure, and that you need to check your engine but it’s important to prepare your vehicle for the coming heat. We’ve put together a simple list to walk you through making sure your car is in top shape for summer.
The constant need to pay for something every month may lead you to question the true purpose of car insurance. Without a general knowledge of car insurance, those who are fairly new to owning a car may get frustrated at the high cost alongside what seems to be a lack of return. Nonetheless, car insurance provides a number of benefits for every driver and vehicle owner. This guide will cover everything there is to know about car insurance and provide answers to some of the most frequently asked questions.