Most drivers spend $92 per month on average for auto insurance. While many people wouldn’t have much trouble paying that, others may be curious to know if there are ways to lower your auto insurance cost.
Fortunately for them, there is. To find out how to get the most out of your insurance plan, keep reading.
Compare Insurance Rates Before Buying a Car
Insurance premiums are based on several factors, but many of them come down to the specific car you’re driving. A car that’s very likely to break down, get stolen, or get into accidents is going to cost more to insure. If you’re thinking about buying a new car, you’re in luck. You can choose a model that’s proven to be less risky for insurance companies by doing just a little bit of research.
To find out how expensive insurance might be for a given car, look up its safety rankings online. Every major model is listed on the internet with information about how likely it is to experience problems and need repairs.
Some insurance companies will offer lower premiums on vehicles that have safety systems installed to prevent theft. By addressing this and the safety rankings of the vehicles you’re considering, you can lower your insurance bill considerably.
Improve Your Credit
Having a solid credit history and a healthy credit score gives you many benefits. Banks, landlords, and even employers are more likely to work with someone with good credit. What many people don’t know is that their credit affects their ability to get cheaper insurance as well.
Research has demonstrated that people who actively manage their credit history and score make fewer claims than those who don’t. It’s also widely recognized that people with poor credit are a higher risk to not just lenders, but also service companies like insurers.
To improve your odds of getting lower-priced insurance, become familiar with your credit report. Dispute any errors you can find and take steps to raise your score. This won’t just help you get cheaper auto insurance — better credit will help you in every part of your life.
Bundle Your Insurance Plans
If you currently use one business for your home insurance, life insurance, and health insurance, you could get a lower rate on auto insurance by adding that to your plan.
Insurance companies often provide more than just one kind of insurance. When someone buys insurance from them for their home, they want them to go ahead and add car insurance as well. To incentivize this, they frequently offer lower insurance prices to their existing customers.
If you already have insurance plans with a company that offers auto insurance, consider bundling your plans together for a lower premium. Additionally, some insurers offer discounted rates to long-time customers, so staying with the same company over several years can be beneficial.
Ask About Low-Mileage and Careful Driver Discounts
Some auto insurance providers offer discounts for customers who don’t do much driving or who drive very carefully. If you only drive a few miles to work and back every day and rarely travel, your insurance company may cut you a deal since you’re less likely to make a claim.
Some companies give discounts to people who have demonstrated that they’re especially careful drivers. To demonstrate this, you may need to install a location tracker in your vehicle temporarily so they can monitor your speed and driving habits. Afterward, you could qualify for a discount on your auto insurance since you’re far less likely to get in an accident than someone who doesn’t drive as carefully.
Reduce Optional Insurance on an Older Vehicle
If your car is worth less than 10 times your insurance premium, it may not be cost-effective to have collision or comprehensive coverage for it. You should look up the value of your car to find out. If your car isn’t worth enough to make the full insurance cost worthwhile, change your insurance plan so you only have what you need to be legal.
From choosing the right car based on its safety and reliability to asking your insurance provider about discounts you may be eligible for, there are a lot of ways you can save a little money on your auto insurance plan.