How Can You Lower Your Car Insurance?
Though auto insurance is necessary for every driver, it can get expensive. If you think your auto insurance is too high, you’re not alone. The average policyholder pays around $1,200 annually. Your individual car insurance rate depends on a variety of factors. Thankfully, there are some things you can do to reduce that premium. Here are 10 ways you can lower your car insurance.
1. Bundle Your Insurance
Insurance providers will take all the business you can give them. To incentivize this, many offer discounts for purchasing multiple insurance policies. This is called bundling. If you have more than one car in your household, consider bundling them together under one insurance carrier. You could also purchase a package that includes homeowners, auto, and/or property insurance.
2. Look Into Group Insurance
Check your employer, alumni association, club, or professional group to see if they offer group insurance. Group plans often provide lower rates than individual ones.
3. Improve Your Credit Score
Your insurance provider uses your credit score when they calculate your car insurance premium. It’s a big part of the formula. Why is this? Even though it seems unrelated, research shows that people with high credit scores are less likely to submit an auto insurance claim. To improve and maintain your credit rating, pay your bills on time and keep your debt-to-income ratio as low as possible.
4. Prove That You’re a Good Driver
If you drive safely, you could qualify for a 10%-23% deduction in your car insurance. But how can you prove that you’re a good driver? Your driving record. If there’s no history of traffic violations and auto insurance claims, you’re good to go! If you do have a violation on your record, consider taking driving courses. Check with your insurance provider before signing up. You want to make sure the insurance savings is worth the price of the course.
5. Adjust Your Auto Insurance Plan
The easiest way to lower your premium is to ask for higher deductibles. If you’re willing to pay more upfront in the event of an incident, it could be worth the annual savings. You could also cancel policies that no longer apply. For example, if you have an old, cheap car, it doesn’t make sense to pay for collision and comprehensive insurance. These types of policies will probably cost you more than the car is even worth.
6. Switch Vehicles
An SUV or luxury vehicle is going to have a higher insurance premium than a basic sudan. This is because they are more expensive to repair or replace. Also, a car with a 4-star safety rating will cost you more than one with a 5-star safety rating. The better the safety, the lower the risk. If your vehicle’s insurance premium is breaking the bank, consider switching to another car. You can research vehicle ratings through the Insurance Institute for Highway Safety.
7. Drive Less
The less you drive, the fewer opportunities for accidents. For this reason, car insurance providers offer low mileage discounts. If you work from home or only use your car for leisure, let your insurance provider know. If you rely on your car for work, consider taking public transportation or carpooling to lower your annual mileage.
8. Choose a Pay-As-You-Go Insurance Plan
If you’re a safe, low-mileage driver, you should also consider a pay-as-you-go (or black box insurance) program. The insurance provider will install a telemetric device into your car and only charge you based on your usage. In some cases, this type of auto insurance plan could be cheaper than a traditional one.
9. Ask About Discounts
Give your insurance agent a call and ask about discounts. Some auto insurance companies offer lower rates for military members, long-time customers, or students with good grades. If you never discuss these benefits with your agent, you may never know they’re there.
10. Shop Around
One of the best ways to get a lower rate is to switch car insurance companies. Just because you have a high premium with your current insurer doesn’t mean it’ll be high with every auto insurance provider. To entice you, some companies may offer you a lower rate.
Lower Your Car Insurance with Nickerson
If you don’t understand why your car insurance is so expensive, let the agents at Nickerson Insurance Service, Inc. take a look. We will assess your requirements and risks to determine the most cost-effective option for you. Over the past 60 years, we’ve built a network of partnering insurance carriers with outstanding reputations. So if you are dissatisfied with an auto insurance policy, we’re confident that we can find a first-rate replacement. Contact us today for a free auto insurance quote.