7 Ways Drivers Can Get a Lower Insurance Premium
Nobody likes paying a high car insurance premium. But what if lowering your premium was easier than you ever imagined?
Many drivers think that their car insurance premium is somehow set in stone. In reality, there are many different ways to lower your premium. You just need to figure out which method works for you!
What if you don’t know how to get started, though? That’s where we come in. Keep reading to learn the easiest ways you can lower your car insurance premium, starting today!
1. Raise Your Deductible
One of the simplest ways to lower your car insurance premium is to raise your deductible. If that sounds a tad confusing, it all comes down to basic math.
At first glance, a low deductible makes more sense because you’ll have to pay less out of pocket when you have a car accident. But be honest: When’s the last time you were in a car accident and had to file for insurance?
Lower deductibles come with higher premiums. If you’re a relatively safe driver, you may be able to afford to raise your deductible and effectively lower how much you pay for car insurance each month.
2. Reduce Coverage If Your Car Is Older
Sometimes, the best method to lower your car insurance premium depends on your car. For example, if you have an older vehicle, you may be able to afford to reduce your overall coverage.
When your car is newer, it makes sense to take out policies such as collision coverage and comprehensive coverage (having both of these plus liability gives you full coverage). Because the car would be expensive to replace, you need enough insurance to protect it no matter what.
But when your car is older, it becomes far less expensive to replace in the event of a major accident. In such cases, it may make sense to drop your comprehensive coverage and even your collision coverage. You can always stick back the money you save and use it to pay for a newer vehicle when the time comes.
3. Ask About Car Insurance Discounts
Pretty much every driver thinks they pay too much for car insurance. But what if lowering your monthly premium was as easy as asking for a discount?
Every car insurance company offers discounts for a variety of different things. This includes completing a driving safety course, installing anti-theft features, maintaining good grades, and so much more.
You won’t know what discounts are available until you ask your carrier. In some cases, you may already qualify for a discount and not know it! Once the discount is in place, your monthly premiums will be lower than what you paid before.
4. Maintain a Solid Driving Record
Have you ever wondered how your insurance carrier sets your premium? There are many different factors, but one of the biggest factors is your driving record. The likelier you seem to get into a car accident, the more expensive your insurance will be.
You can make this work in your favor by maintaining a solid driving record. If you can avoid speeding tickets and accidents, you can demonstrate to the insurance carrier what a safe driver you are. After that, the carrier may be willing to lower your cost.
If nothing else, a safe driving record can keep your premium from going up. In most cases, filing a claim (even if you weren’t at fault) can make your insurance rise. Safe driving means fewer claims, and this helps keep your car insurance prices from increasing to an exorbitant amount.
5. Bundle Your Insurance Policies
Some of the ways to lower your car insurance premium are easier than others. For example, if you need more than one kind of insurance, you should consider bundling through the same carrier.
The most common scenario is that you are a homeowner who drives a car. In this case, you need to have both car insurance and homeowners’ insurance. Typically, you would end up paying more to get these insurance plans through separate companies.
The solution is simple: Bundle your different insurance plans through the same insurance carrier. Not only does this help you save money on multiple premiums, but it makes it easier to track and pay your premiums month after month.
6. Improve Your Credit
Insurance carriers examine multiple factors before setting your insurance premium. Some of these factors are ones you can’t easily change, including things like your gender and your age. Other factors are easier to change for the better, including your credit score.
For better or for worse, insurance carriers in most states use your credit score to set your insurance premium. You can use this to your advantage by signing up for free credit monitoring services. Such services let you know what your current credit score is and give you specific ideas for how to improve the score.
Increasing your credit score can lower your monthly car insurance premium. As an added bonus, a higher credit score can make it easier to qualify for major loans such as mortgages.
7. Shop Around for a Better Rate
So far, we have focused on the best ways of getting a lower insurance premium via your existing carrier. However, the single best way to lower monthly premiums is to shop around for a better rate through different insurance carriers.
For drivers, shopping around is basically a win-win. You can get a variety of quotes from different carriers before committing. If you can’t find a better price, there is no need to switch carriers.
Ultimately, switching carriers is easy and convenient. You might be amazed at just how much you are able to save!
Get the Best Automobile Insurance Today!
Now you know the best ways to lower your car insurance premium. But do you know where to find the most affordable car insurance?
At InsureOne, we offer all of the car insurance you need at prices that will fit your budget. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices!