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.

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