The Best 6 Ways to Lower Your Auto Insurance Costs
Lowering your auto insurance costs can seem like an impossible feat, especially if you’ve tried to do so before. That said, these six ways to lower your auto insurance costs are simple and straightforward, but they could mean hundreds of dollars in savings each year on your insurance bill.
1) Review Your Coverage
It’s important to know what your car insurance covers and what it doesn’t. Review your coverage limits and find out if you are overpaying for the coverage you need. The best way to do this is by getting quotes from different insurance providers. Make sure you understand what is covered before you start shopping for a new plan.
You can also lower your auto insurance costs by doing the following:
1) Lowering your deductible
2) Adding safety features like anti-theft devices
3) Increasing your liability protection
4) Insuring older cars at higher premiums
5) Buying comprehensive and collision coverage together (most companies offer discounts when they are bundled together), and
6) Using less of your own vehicle by carpooling, taking public transportation, or riding a bike.
You could lower your auto insurance costs even more by driving safely and avoiding accidents. Carrying high deductibles will reduce the cost of each individual claim but increase the risk that you will have to pay out-of-pocket for damages. Drivers with extensive experience and good records often qualify for discounted rates. Comprehensive coverage will cover damage to your car in any type of situation including vandalism, theft, fire, hail storm and flood.
Collision insurance only pays for repairs after an accident not general wear and tear on your car such as rust. If you live in a city where parking spaces are difficult to come by, you may want to consider buying one parking spot instead of two and use the second one as needed through services like Zipcar. You can always lower your auto insurance costs even more by being cautious on the road–driving slower than other drivers does not necessarily mean you’ll be safer!
2) Compare Quotes
A great way to lower your auto insurance costs is by comparing quotes from different providers. You can get started on the process online or by calling customer service for a handful of companies and asking for their rates. When you make your decision, be sure that the company has a solid reputation and is trustworthy in case something does happen.
Another way to lower your auto insurance costs is by insuring more than one car with the same company. Some companies will give you a discount on your premiums if you bundle both cars together, which means that it’s worth exploring this option if you have two or more vehicles.
You can also try raising your deductibles in order to lower your auto insurance costs.
3) Increase Your Deductible
Increasing your deductible is one of the simplest ways to lower your auto insurance costs. The more you are willing to pay out-of-pocket before your insurance kicks in, the less you will have to pay for monthly premiums. Of course, this can be a gamble if you end up with a claim and have to come up with thousands of dollars out of pocket. But the possibility may not be worth it if you are only looking at a small decrease in your monthly premiums.
Increase Your Deductible (seven sentences)] Increasing your deductible is one of the simplest ways to lower your auto insurance costs. The more you are willing to pay out-of-pocket before your insurance kicks in, the less you will have to pay for monthly premiums.
4) Ask for Discounts
One easy way to lower your auto insurance costs is by driving less. Many drivers do not realize that the more miles they drive, the higher their insurance premiums will be. It may seem counterintuitive that driving less can actually lead to a lower insurance cost, but it does work. By driving less you are reducing the number of days you will be considered at-risk for an accident and thus lowering your risk level. Additionally, if you have good credit, you can apply for a good driver discount from certain companies like State Farm® or GEICO®, which can provide up to 30% off your monthly premium. If you’re a safe driver who drives less than 12,000 miles annually then this could save you hundreds per year on car insurance premiums!
5) Bundle Your Policies
Bundling your policies is one of the best ways to lower your auto insurance costs. By bundling together your home and auto insurance, you’ll get a discount on both policies and save money. If you have a car loan or lease, add that too. And if you have other insurances like health or life insurance, bundle those into a package for even more savings. With bundled insurance, you’re not paying for duplicate coverage so your premiums are much lower. You can also lower your auto insurance costs by getting a policy with a high deductible amount. The higher the deductible amount, the lower the premium because insurers know they won’t have to pay out very often in this scenario. What’s more, deductibles can be paid in cash instead of with monthly premiums which will also reduce your total cost and make it easier to budget as well!
6) Drive Less
Driving less can help you lower your auto insurance costs. According to the National Highway Traffic Safety Administration, driving just 10 miles a day can save you $7 a month on gas and lower your insurance premiums by $30 per year. If you want to take it one step further, check out free apps like Gas Cubby for the iPhone which will help you find the cheapest gas near your location. Other ways to lower your auto insurance cost:
-Check Your Coverage: If you are underinsured, there is no way that you can get cheaper car insurance.
-Get Multiple Quotes: Compare quotes from different car insurance providers before choosing the best option for yourself. -Watch Out For The Price Hike: Monitor how much your car is worth and make sure that when insuring it that you buy more coverage than necessary – this will prevent having to pay more in the event of an accident.
-Buy A New Car: The safety rating of new cars has increased dramatically in recent years and as a result so has their resale value. And while we all know it’s not always easy to sell your old vehicle, the truth is that if you do sell it, you’ll be entitled to a deduction of up to $100 from your income taxes! And if you buy or lease your next vehicle now, then depending on the type of agreement with your current provider, may also be able to use some or all of what would have been owed as deductible expenses. With these few simple steps- lower your auto insurance costs today!