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Nobody wants to overpay for simple necessities such as rent, gas, and groceries. The same thing applies to your auto insurance policy. While you cannot do much about the cost of gas, you can take steps to lower your auto insurance premium.
Remember that your premium is based on various factors, such as age, gender, location, marital status, vehicle type, and driving history.
While you cannot change some of these factors, they can actually help you lower your auto insurance premium. Still in the wilderness? Below is our comprehensive list of simple ways to lower your auto insurance premium.
1. Shop Around for the Best Rate
One of the best ways to save money on your car insurance premium is to shop around. Typically, car insurance quotes vary from company to company. Get at least three quotes from different companies and compare them carefully. Doing this will help you find the most affordable car insurance policy.
Remember that your primary objective of purchasing an auto insurance policy is for peace of mind and financial protection. Therefore, it is critical to pick a financially stable company.
However, don't shop by price alone. Make sure that you are getting the coverage you need. It is also essential to read the fine print before signing on the dotted line.
2. Keep Your Driving Record Clean
Your driving record is one of the most crucial elements in determining your auto insurance premium.
If you have a clean driving record, you are less likely to be involved in an accident, which means you are less likely to make a claim. As a result, you will be considered a low-risk driver and be rewarded with a lower premium.
If you have been involved in an accident or received speeding tickets, your insurance company will deem you high risk, which means you will have to pay a higher premium.
To keep your driving record clean, avoid speeding and driving recklessly. If you are involved in an accident, ensure you take care of any traffic tickets as soon as possible.
3. Choose a Higher Deductible
If you want to lower your car insurance premium, one of the best things you can do is raise your deductible. By doing so, you will be responsible for paying more money out of your pocket if you are involved in an accident.
This may seem like a risky move, but it can actually save you a lot of money in the long run. Just make sure you have enough money saved up to cover your deductible in you are involved in a car accident.
4. Drive a Safe Car
The type of car you drive also plays a role in determining your auto insurance premium. If you drive a sports or luxury car, you can expect to pay a higher premium than someone who drives a modest sedan.
This is because sports cars and luxury vehicles are more likely to be involved in an accident and are also more expensive to repair. Consider driving a safe vehicle if you want to save money on your car insurance premium.
5. Take Advantage of Discounts
Most insurance companies offer a variety of discounts to their customers. You may be eligible for a good driver discount if you are a safe driver. You can also get a discount if you have taken a defensive driving course.
Some insurance companies also offer discounts if you have installed safety devices in your vehicle, such as anti-lock brakes or airbags. Be sure to ask your insurance company about any discounts you may be eligible for.
6. Review Your Coverage Regularly
How many times have you reviewed your current car insurance coverage? If it has been a while, now is an excellent time to take another look. As your needs change, so does your ideal car insurance coverage.
For example, you may not need as much coverage if you no longer commute to work. Or, if you have paid off your car loan, you may be able to get rid of collision and comprehensive coverage.
Reviewing your car insurance coverage regularly will help you ensure that you get the right amount of coverage at the best possible price.
7. Bundle Your Insurance Policies
You often see TV commercials advertising how you can bundle your home and auto insurance policies and save money. In most cases, this is true.
Bundling your insurance policies means that you will have one company insuring both your home and car. This can lead to a discount on both policies.
Before you bundle your insurance policies, make sure that you are getting the best possible rate. Sometimes, it may be cheaper to have two separate insurance companies.
8. Avoid Unnecessary Car Modifications
Lastly, you can save money on car insurance by avoiding unnecessary modifications. Insurance companies deem certain modifications high-risk, which means your premium will increase.
Some of the most common high-risk modifications include installing a powerful stereo system, lowering your car, or adding aftermarket wheels. If you want to save money on your premium, avoid making these types of modifications.
Summary
Car insurance is a necessary evil for most drivers. But there are ways to make it more affordable.
By shopping around for the best rate, keeping your driving record clean, driving a safe car, and taking advantage of discounts, you can save money on your car insurance premiums.
Review your coverage regularly to ensure you're getting the best deal, and bundle your policies to save even more. Avoid unnecessary car modifications to keep your rates low.
Follow these tips, and you'll be able to keep your car insurance costs under control.
