In the olden days, they used to call cars “lady killers” for two reasons: 1) Because of how stylish and cool they looked, and 2) because of how many accidents they caused.
Hence, this is why we all are required to carry auto insurance. You never know where and when something is going to happen to you out on the road. It could be your fault, or it could be the other guy’s. Regardless, there will always be a price to paid at every accident.
Like most forms of insurance, sometimes what you’re actually buying can get a little tricky. That’s why we’ve put a list of 18 easy ways you can lower your auto insurance and get the possible premiums you can get.
1- Keep your record clean!
This one goes without saying. Nothing hikes up your rates like a few speeding tickets. Do yourself and your wallet a favor by sticking to the right side of the law.
2- Keep your credit score high too.
I can’t stress this enough: Your credit history will ultimately determine many of the rates and discounts that you will be entitled to throughout your life. And your auto insurance is no different. Pay your bills on time and keep your score up, and you’ll get a much better price.
3- Shop around for cheaper car insurance.
There is absolutely no need to stick to just one car insurance provider. At least once per year, get a couple of quotes and you’ll see what I mean. This simple exercise has helped me to save hundreds of dollars over the course of the year easily.
4- Buy direct online.
The Internet is full of reputable providers. Google “top auto insurance providers” and then go down the list. Almost every provider these days has an instant online quote form.
5- Don’t go through an independent agent.
Cut out the middle-man. They will try to sell you on the idea that they can get you some dynamite deal. But really all they’re looking to do is get a cut of the commissions. Like I said: You can find everything you need right on the Internet.
6- Lower your coverage.
Though it may seem like a good idea to get higher bodily injury and property damage rates, remember that the more you raise these figures the higher your premiums will go. 100/300/50 coverage for is plenty for most people.
7- Raise your deductible to $1,000.
Raising your deductible is a good way to instantly drop your rate. Yes, it would stink to have to pay $1,000 if something happened. But generally speaking, if you’re a safe driver, then your odds of getting in an accident are pretty slim. Therefore, you can take the gamble.
8- Get tracked.
Want to get a rate that is personalized especially for you? Participate in a safe driving program that tracks your driving. This is usually done through an app on your smartphone. We tried this out and got a whopping 14% knocked off our bill! Sounds like a win-win option.
9- Ask about other discounts.
Sometimes your occupation, military status, affiliation or even credit union membership is worth a discount. To save a few bucks, its worth asking!
10- Safety features?
Does your vehicle have any notable safety features? If so, make sure that your insurance provider knows. Usually safer = cheaper rates.
11- Stay with the same company longer.
Even though I said earlier to shop around, if you really like your provider and have been with them for a while, use that to your advantage. Your loyalty could be worth another discount – especially if you threaten to leave and go with someone else.
12- Drop full coverage.
If your car is significantly older and not worth very much, consider dropping full coverage (collision and comprehensive). It’s not going to make much sense to spend more money than what the car is worth.
13- Drive a car that’s cheaper to insure.
Let the car’s safety features and ratings be something you consider the next time you go shopping for a new vehicle.
14- Pair auto with other insurances policies.
Insurance companies really love it when you bundle. Therefore, let them make it worth your time by giving you a discount if you add in a home or life insurance policy.
15- Pay annually all at once.
If you break up your payments by month, you will usually pay more.
16- Always stay insured.
Never lapse and allow yourself to become an uninsured motorist. This will cause your rates to become higher.
17- Low mileage discounts?
If you don’t drive much, take advantage of low-mileage discounts.
18- Usage-based insurance.
Again, if you don’t drive often, consider usage-based insurance. Think of it like a pay-as-you-go cell phone but for driving instead.
Featured image courtesy of Flickr