Due to the litigious nature of our society and the increasing prices of vehicles, car insurance rates are on the rise across the country. The bad news is that insurance isn\u2019t likely to come down in price anytime soon. The good news is that there are things you can do to minimize increases or reduce the burden on your wallet.<\/p>\n
How to lower car insurance? Here are 15 different strategies.<\/p>\n
If you obtain a quote from an auto insurance company to insure a single vehicle, you might end up with a higher quote per vehicle than if you inquired about insuring several drivers or vehicles with that company. Insurance companies will offer what amounts to a bulk rate because they want your business. Under some circumstances, they are willing to give you a deal if it means you\u2019ll bring in more of it.<\/p>\n
Ask your insurance agent to see if you qualify. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage. Two unrelated people may also be able to obtain a discount; however, they usually must jointly own the vehicle.<\/p>\n
If one of your drivers is a teen, you can expect to pay more to insure them. However, if your child\u2019s grades are a B average or above or if they rank in the top 20% of the class, you may be able to get a good student discount on the coverage, which generally lasts until your child turns 25. These discounts can range from as little as 1% to as much as 39%, so be sure to show proof to your insurance agent that your teen is a good student.<\/p>\n
Incidentally, some companies may also provide an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers a 10% car insurance discount and a 25% homeowners insurance discount when you bundle them together, so check to see if such discounts are available and applicable.1<\/span><\/p>\n In other words, be a safe driver. This should go without saying, but in today\u2019s age of increasing in-car distractions, this bears mentioning as much as possible. The more mindful you are, the more accidents or moving violations you\u2019ll be able to avoid\u2014events that raise your insurance rates. Travelers offer safe driver discounts of between 10% and 23%, depending on your driving record.2<\/span><\/p>\n For those unaware, points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums (all else being equal).<\/p>\n Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or another course.<\/p>\n Make sure to ask your agent\/insurance company about this discount before you sign up for a class. After all, it\u2019s important that the effort being expended and the cost of the course translates into big enough insurance savings. It\u2019s also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses, and GEICO allows you to check what they are by the state on its website.3<\/span><\/p>\n If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies, just in case there is a lower rate out there.<\/p>\n Remember, cheap doesn\u2019t always mean good, and going with the lower-priced company isn\u2019t always the wisest decision. That\u2019s because the insurer\u2019s creditworthiness should also be considered. After all, what good is a policy if the company doesn\u2019t have the wherewithal to pay an insurance claim?<\/p>\n To run a check on a particular insurer, consider checking out a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but what your contract covers is also important, so make sure you understand it. Insure.com\u2019s site bases its insurance company ratings on data assembled by Standard and Poor\u2019s.4<\/span><\/p>\n In general, the fewer miles you drive your car per year, the lower your insurance rate is likely to be, so always ask about a company\u2019s mileage thresholds.<\/p>\n<\/div>\n<\/div>\n<\/div>\n When you sign up for insurance, the company will generally start with a questionnaire. Among the questions it asks might be the number of miles you drive the insured automobile per year.<\/p>\n If you use your vehicle to commute three hours to work every day, you will generally pay more in insurance premiums than someone who only drives one mile a day. If possible, try to use mass transit to rack up fewer miles, keeping in mind that you will usually have to decrease your mileage significantly before incurring a discount. Ask your insurance company about the company\u2019s different mileage thresholds, so your efforts won\u2019t be wasted.<\/p>\n Buying a huge SUV may sound exciting, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost commuter car. Some insurers will offer a discount if you buy a hybrid or an alternative fuel vehicle. Farmers, for example, offers a 5% discount.5<\/span><\/p>\n You can feel good about protecting the environment and save money on insurance at the same time. Find out the exact rates to insure the different vehicles you\u2019re considering before making a purchase.<\/p>\n When selecting car insurance, you can typically choose a deductible, which is the amount of money you would have to pay before insurance picks up the tab in the event of an accident, theft, or other types of damage to the vehicle. Depending on the policy, deductibles typically range from $250 to $1,000. The catch is that, generally speaking, the lower the deductible, the higher the annual premium.<\/p>\n Conversely, the higher the deductible, the lower the premium. Ask your agent how your premium might be affected if you raised your deductible. It may make the annual premium better by several percentage points and put some money back in your pocket, or the savings may be minimal. If you are reluctant to file smaller claims to avoid the risk of pushing up your premium, raising the deductible may be a particularly sensible move.<\/p>\n A driver\u2019s record is obviously a big factor in determining auto insurance costs. After all, it makes sense that a driver who has been in a lot of accidents could cost the insurance company a lot of money. However, folks are sometimes surprised to find that insurance companies may also consider credit ratings when determining insurance premiums.<\/p>\n Why is your credit rating considered? Michael Barry, senior vice president and head of media relations of the Insurance Information Institute, puts it this way:<\/p>\n \u201cMany insurers use credit-based insurance scores. It\u2019s a contentious issue in certain statehouses…[but] insurers will say their studies show that if you\u2019re responsible in your personal life, you\u2019re less likely to file claims.\u201d<\/p><\/blockquote>\n Regardless of whether that\u2019s true, be aware that your credit rating can be a factor in figuring insurance premiums, and do your utmost to keep it high.<\/p>\n It\u2019s unlikely that you will move to a different state simply because it has lower car insurance rates. However, when planning a move, the potential change in your car insurance rate is something you will want to factor into your budget.<\/p>\n Dropping certain types of coverage can be a slippery slope. After all, nobody can predict if or when an accident will occur. However, if you are driving an extremely old automobile that\u2019s on its last legs, it may make sense (depending on the cost, your driving record, and other factors) to drop collision or comprehensive coverage. The reason for this is that were the vehicle to be involved in an accident, the insurance company would likely total the car. If the value of the car is only $1,000 and the collision coverage costs $500 per year, it may not make sense to buy it.<\/p>\n Individuals have the potential to lower their annual premiums if they install anti-theft devices. GEICO, for example, offers a \u201cpotential savings\u201d of 25% if you have an anti-theft system in your car.6<\/span><\/p>\n Your insurance company should be able to tell you specifically which devices, when installed, can lower premiums. Car alarms and LoJacks are two types of devices you might want to inquire about.<\/p>\n If your primary motivation for installing an anti-theft device is to lower your insurance premium, consider whether the cost of adding the device will result in significant enough savings to be worth the trouble and expense.<\/p>\n It\u2019s important to note that there may be other cost savings to be had in addition to the ones described in this article. In fact, that\u2019s why it often makes sense to ask if there are any special discounts the company offers, such as for military personnel or employees of a certain company. You never know what sort of discount pricing might be available for your circumstances.<\/p>\n If you\u2019re a safe, low-mileage driver, a usage-based insurance program (also known as black box insurance) may be available to you, such as Allstate\u2019s Drivewise,7<\/span> Progressive\u2019s Snapshot,8<\/span> or State Farm\u2019s Drive Safe & Save.9<\/span> By signing up for these programs, you let your insurer track your driving through a telemetric device installed in your car in exchange for possible discounts based on how much you drive when you drive, and how well you drive. If you drive fewer than 10,000 miles a year, you might be able to save money with this type of program.<\/p>\n Insurers provide a variety of discounts. Check for discounts such as these:<\/p>\n Don\u2019t be swayed by a long list of possible discounts. Compare both discount and regular prices from multiple insurers.<\/p>\n You may not need all the bells and whistles in a policy, such as roadside assistance and car rental coverage. Go over your insurance policy line by line and ask about removing anything you don\u2019t need.<\/p>\n The price of auto insurance is likely to continue to rise in the future. However, there are many things you can do to reduce the sting. These 15 tips should get you driving in the right direction.<\/p>\n","protected":false},"excerpt":{"rendered":" Due to the litigious nature of our society and the increasing prices of vehicles, car insurance rates are on the rise across the country. The bad news is that insurance isn\u2019t likely to come down in price anytime soon. The good news is that there are things you can do to minimize increases or reduce the […]<\/p>\n","protected":false},"author":1,"featured_media":1080,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/posts\/1002"}],"collection":[{"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1002"}],"version-history":[{"count":4,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/posts\/1002\/revisions"}],"predecessor-version":[{"id":1081,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/posts\/1002\/revisions\/1081"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=\/wp\/v2\/media\/1080"}],"wp:attachment":[{"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1002"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheappolicy.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} 2. Mindful Driving Cuts Costs <\/span><\/h2>\n
3. Take a Defensive Driving Course <\/span><\/h2>\n
4. Shop Around for Better Premiums <\/span><\/h2>\n
5. Use Mass Transit <\/span><\/h2>\n
6. Larger Cars Cost More <\/span><\/h2>\n
7. Increase Your Deductibles <\/span><\/h2>\n
8. Improve Your Credit Rating <\/span><\/h2>\n
9. Location May Increase Costs <\/span><\/h2>\n
10. Review Comprehensive Coverage <\/span><\/h2>\n
11. Discounts for Anti-Theft Device <\/span><\/h2>\n
12. Speak to Your Agent <\/span><\/h2>\n
13. Pay-as-You-Go Insurance <\/span><\/h2>\n
14. Research Additional Discounts <\/span><\/h2>\n
\n
15. Coverage You May Not Need <\/span><\/h2>\n
The Bottom Line <\/span><\/h2>\n