If you own a car, insurance is a mandatory expense. Driving without insurance can get you into major trouble. Fair or not this is an expense you need to carry not only for your protection but other people as well. Accepting this as a necessary expense is a lot easier when you can find ways to reduce the cost. Here is a list of easy ways to keep your auto insurance rates down.
A higher deductible in most cases means lower monthly rates. Decide how much you can afford to pay out of pocket if the car is damaged and use that number as your deductible. If you have an older car, decide if the highest deductible is a good idea and instead of fixing the car purchase a newer vehicle.
Security and Safety Features:
Where you store your car and adding an anti-theft device to your car can help reduce your rates. When purchasing the car add on additional safety features that your insurer gives discounts on. If you already have your car ask your insurer what safety features you can add onto the car to get a discount.
The make, model and year all play a part in your insurance rates. This is common knowledge. Compare features as well; four door is better than two door, sun roof is better than convertible soft top, even engine size makes a difference in your insurance rates. When picking out your automobile make sure you take insurance rates into consideration along with the price.
Do your research, if the car is older does it make sense to have damage and collision on the body of car? Most likely not. Most insurers won’t put this on the policy but some do. Make sure you review your policy thoroughly when entering into the agreement. Don’t be afraid to ask questions on what covers what and if you truly need that option.
Good Driver Benefits:
Good drivers with a strong track record have lower insurance rates. Avoid getting tickets, drive safely and courteously, avoid accidents, and never drive under the influence. If you have a bad driving record look into taking some safety courses that the insurance company endorses and they will trade those safety courses for lower rates. If another driver in the household has a bad record and you have a good record, exclude them from the policy. This means they cannot drive the car but you will be paying lower insurance rates.
Low mileage discount or pay as you drive plans:
Most insurers offer low mileage discounts. If you can save mileage by car pooling or taking public transportation, or even living in close proximity from your work or school you may find a discount with your insurance company. Some states even offer Pay by the Mile or Pay as you Drive plans. These are great ways to save money, cut down on gas usage, and help improve the environment.
Combine Insurance Policies:
Use one insurance company for your renter/homeowner and auto policies and you will receive a discount. Also if you have multiple vehicles in the household, putting all vehicles on one plan can gain you a discount as well.
Improve your credit rating
Fair or not, most insurers have found that there is a direct link with your driving and your credit report. If you have good credit you will automatically qualify for the discount. If you do not, it is a good idea to start repairing that credit because insurance companies will charge you more for bad credit history.
If you are under 25, you can expect higher rates but you can also find discounts like good grades. Most insurers give a discount to students with a grade B or above. Once you reach 25 insurance companies found in general that you are a safer driver and the rates will go down. As you get older and maintain a good driving record your rates will continue to go down.
You Better Shop Around
I love that song. No pun intended, take your time when purchasing insurance. Go to multiple companies and compare prices. You will find they differ greatly. It is recommended that you spend at least one day shopping for car insurance.
By using these tips and asking questions you will find that reducing your car insurance rates is a lot easier than you thought and you will be able to enjoy your vehicle a lot more.