As a driver, you want to pay the lowest rate on auto insurance, however you do not want to give up on enough coverage in the event you are ever involved in an accident.
For this reason, whether you are old or new, have been driving for twenty years or 20 days months, are male or female, or live in any area of the country, you have to know how to go about lowering your rates, without compromising on the level of coverage.
These 5 things you can do to lower your auto insurance rates can help you do just that.
5 Things You Can Do To Lower Your Auto Insurance Rates
1. Reduce The amount You Drive
The first of the 5 things you can do to lower your auto insurance rates is that your insurer is going to calculate your cost for a policy based on how much you drive, in fact, when getting a quote, it is one of the first questions they ask. You can’t easily change your address, or the fact that you have prior tickets on your record, but you can modify how often you drive. The less you drive, the lower your rates, simply because you are less of a risk for a claim since you are on the road less frequently.
So, when possible, commute with a friend to work, take the bus to the grocery store, or if you work close to where you live, walk one or two days a week. You would be surprised how much lower your rates are going to be if you only drive 25 miles per week, instead of 75 miles or more. You can’t always rely on public transport or carpooling, but when possible, do so and you will see a great deal of difference in the rates you are paying.
2. Increase Your Deductible
The second of the 5 things you can do to lower your auto insurance rates is that most people have a deductible of $500 or more on their policy. Yes, this is great if you are involved in an accident, it means you are paying less out of pocket for the damage. But, if you increase your deductible to $1000 or more, you won’t pay nearly as much on your monthly premium. This does mean you will pay more attention on the road, and drive more carefully to avoid accidents (but shouldn’t you be doing this in the first place?), and paying out of pocket expenses. Increasing your deductible will bring the rates down greatly on an insurance policy. Just be careful if you are leasing or financing your vehicle that the bank or finance company allows deductibles higher than $500.
3. Know Your Cars
The third of the 5 things you can do to lower your auto insurance rates is that Camaro, Corvette and Mustang are a few of the most well known sports cars, and who wouldn’t want one? But, with these cars, and high profile cars, also come the absurd insurance rates. If you are on the market for a new car, think Corolla rather than Convertible Mustang. The lower profile your car is, the lower your rates. So, go conservative when buying a car, rather than faster larger engines, to keep your premiums down.
The fourth of the 5 things you can do to lower your auto insurance rates is – Do you own a home? Rent a condo? Need life insurance? If so, bundling policies is the easiest way to save. When you purchase all of these, and other policies you need from one insurer, your rates per policy are going to go down. The same goes if you have more than one driver on the vehicle registered with your insurer. If you add two or three drivers, rather than one, you are paying less per driver. So, bundle and add more drivers in one home, to help see those rates come down.
5. Drive Safe
The fifth of the 5 things you can do to lower your auto insurance rates is that the older you are, the less your insurance tends to be; this stems from the fact that you are more careful, less likely to talk on the phone, and pay more attention on the road. But, even younger drivers can save when they are safe drivers. Avoid speeding tickets, traffic stops, accidents, and keep a clean record. Each year you will see the rates go down, plus you don’t have to worry about wrecking your car and replacing it as often.
These simple 5 things you can do to lower your auto insurance rates tips not only help make you safer and less of a threat on the road, but will also help you in reducing your monthly premium rates, when you are looking for the best prices for your auto insurance policy.