6 Ways to Decrease Your Auto Insurance

16 January 2015
 Categories: Insurance, Articles

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If you feel like you are paying too much for auto insurance, you just might be. There are a number of ways that you can save on your auto insurance. If you have never looked into potential ways to save money, here are a few simple ways that you might be able to reduce your car insurance.

Check Around for a Better Rate

Car insurance rates vary quite a bit from company to company. It is always worth your time to check around every so often and make sure you are getting the very best rate out there. Any major insurance carrier will offer quick online price quotes; you may have to call in to get a quote from smaller companies.

Some insurance companies will even offer you comparison quotes from their competitors so you can get a full picture of the options available to you. It's a good idea to get a minimum of three quotes. If you find a rate you like but you don't want to deal with the hassle of switching companies, call up your agent and see if they would be willing to match your new quote.

Bundle Your Car & Home Insurance

If you are a homeowner, you may be eligible for a reduced rate on your auto insurance through your current homeowner's insurance company. If not, check around and find a company that offers a reduced rate for insurance bundles. It may end up saving you money to switch insurance companies.

A Change in Lifestyle Could Save You Money

Many insurance companies offer lower rates to individuals who have achieved certain milestones in life. Turning 25, graduating from college, and getting married are all examples of life events that could result in a rate reduction on your car insurance. Call your agent after a major life event and see if there are possible discounts you have become eligible for.

The most obvious one is a change in location. If you change zip codes, your car insurance rate is also going to change. Moving to the suburbs from the city is likely to come with a sizable drop in your insurance premium. Reducing the number of miles you drive regularly by carpooling or working from home could also reduce your rates through a low mileage discount.

Improve Your Credit Score to Lower Your Rates

You might wonder what your credit score has to do with your insurance rate.  Many companies now look at your overall creditworthiness when determining your insurance premiums. Individuals with better credit scores are less likely to be involved in claims and as such, qualify for lower premiums. Work on improving your credit and check with your insurance company to see if you qualify for any discounts.

Maintain a Safe Driving Record

It's not a guarantee, but many insurance companies offer discounts to proven safe drivers. If you have not had an accident or a moving violation in several years, it might pay to check with your agent and see if your clean driving record qualifies you for a discount.

Change Up Your Insurance Coverage

If you've tried everything and you're still paying too much, your deductibles might be too low. Your rates can decrease dramatically if you increase your deductible, which is the amount you must pay out of pocket before your insurance kicks in. It's possible to save enough in annual premium payments to cover the cost of the deductible should anything happen and you need to make a claim in the future.

Another way to reduce your insurance costs is to go with less coverage. Especially if you have an older car, it may not make sense to pay more for collision and comprehensive coverage. Check your local laws to make sure you have the coverage you legally need before making any changes, but you may be able to save quite a bit by reducing your coverage to the minimum.