For most people, their car insurance cost makes up a significant portion of their annual living expenses. According to Quadrant Information Services, the average annual cost of US car insurance was $907.38 in 2014. In some places, such as Michigan, the annual cost was as high as $2,551!
Since there is such a large difference in the range of prices, it’s possible that you are being overcharged for your car insurance.
However, this large range of prices also means that there is a lot of leeway with which to negotiate a lower rate for your car insurance premiums. Here are 9 ways you can lower your car insurance premiums:
Get Multiple Quotes Before Committing To An Insurer
The rates offered between different insurers can vary substantially, so it makes sense to shop around for the best price. Nowadays, it is very easy to compare prices online with a simple google search, and it costs you virtually nothing to get a quote from an insurer.
Websites such as CarInsurance.com allow you to make comparisons with car insurance pricing and obtain free price quotes.
Bundle Your Insurance For Discounts
If you need to insure multiple cars or vehicles within your family, then bundling them together with one insurer could cost you less than insuring them individually with different providers. An insurer is likely to give you a discount if you need to bundle several policies together.
This also applies if you have other types of insurance with the same company. For example, bundling home insurance with your car insurance.
Find Out About Group Insurance Discounts
It is common for insurers to give discounts to members of certain professions or industries. For example, nurses, magistrates and teachers are among the professions who often get discounted insurance rates.
Adjust Your Deductible Amount
It’s possible to lower your premium, by adjusting the amount of your deductible. Generally, if you increase your deductible amount, your premium amount should be lowered. You can then use this cost saving in the event you need to make a claim.
Be Careful With Your Choice of Vehicle
When making a purchasing decision for your vehicle, it is a good idea to factor in the cost of insuring the car as well. Although a large SUV might appeal to you, the insurance cost over the lifetime of owning that SUV could be exorbitantly high. On the other hand, a smaller (but safer) car used for commuting would be substantially less to insure.
Consider Removing Unnecessary Types of Coverage
If you are insuring an older car with comprehensive and collision insurance, you might discover that the premiums you pay are higher than the actual value of your car. If that is the case, you might be better off canceling these types of coverage, and setting aside the savings in case of an accident.
Improve Your Credit Score
Yes, you heard correctly, a better credit score can lower your car insurance premium. The theory behind this is that if you are a financially responsible person, then you are more likely to be a responsible driver too.
Keep your credit score in check by making payments on time, and regularly checking to see if there are any items in your history that you aren’t aware of.
Reduce Your Mileage
If your mileage is lower than average, then you could possibly lower your insurance premium. This could be for a number of reasons: maybe you have a short commute, or you park your car at the train station, and ride the subway into work. Whatever the reason, if you do have lower mileage on your car, you can negotiate a discount with your insurer.
Improve Your Car Security
If you lower the risk of your car being stolen by installing anti-theft devices, you could lower your insurance rates by a few percentage points. Examples of such devices include car alarms and vehicle tracking devices. Your insurer will typically have a list of items that can be added to your car.
Since car insurance will likely continue to be a large expense in your budget, it makes sense to do what you can to minimize this cost. Use these 9 ways to lower your car insurance rates, and save more of your money in the long run.