Are you paying out the wazoo for your car insurance? Maybe you’re in the market for a new car, but are looking for how to lower the rates before investing in one. Perhaps, you’re strapped for cash and need a bit more wiggle room on your monthly bills.
Whatever the case might be, there are always ways that you can control the amount you pay on your car insurance. The decisions that you make will dictate how much or how little you’re paying each month on your premiums.
Here are a few ways to lower car insurance and get your hands on a budget-friendly cost.
1. Buy a Used Car
One of the most effective ways to help you save on car insurance is when you initially browse around for your next car. The car you choose will play a huge role in how much insurance you can expect to pay.
Buying a used car will help you spend less on monthly car insurance premiums, but there’s a balance to be struck.
If you purchase a used car that’s too old, then you’ll find that car insurance rates skyrocket. That’s because the age of the car leads your provider to assume it will need more coverage.
However, if you purchase a car that’s too new, the rates might also jump as a result. Be sure to set a used car budget as you browse and factor in the car insurance rates as you look. You’ll be happier with your purchase as a result!
2. Find a Safe Place to Park the Car
It might surprise you to find out that the location where you choose to park your car has a direct correlation with the car insurance rates you’re offered.
Why? Because insurance companies are dot connectors. They make a lot of assumptions about your situation. For example, if you don’t park your car in a personal garage, it’s more likely to get broken into. They view that as a risk.
Have you ever had an insurer ask you whether your home has a garage or not? Now you know why! They identify it as a liability, bumping your rates up as a result.
3. Don’t Reach for Lower Deductibles
Potentially getting into a car accident is a scary thought. What might be even scarier is the thought of paying a higher deductible to get your car back on the road.
However, the fact remains that it isn’t likely you’ll be finding yourself in an accident anytime soon as long as you stay attentive on the road. As long as you do, you won’t be paying a high deductible on anything for a long time… possibly ever.
For that reason, aiming for a lower deductible is silly. To achieve a lower deductible, you’ll need to sacrifice the amount on your premiums, thus making them higher.
The car insurance representatives you speak with will try to force you into smaller deductibles anyways unless you insist on paying higher ones. Don’t sign the dotted line until they’ve given you a quote with a higher deductible attached.
Even if you do get into a car accident, the money you save on your monthly premiums will single-handedly pay for the increased deductible.
4. Insure Many at Once
Insurance providers love providing for more than one vehicle on an account. It’s equivalent to you getting a buy-one-get-one promotion to your favorite clothing store.
Why? Because they get more money as a result! However, you can also benefit from that by asking for a lower rate on each separate driver/vehicle when applying for it at the same time.
Some companies will also give you a discount if you have different types of insurance with them, such as home insurance, renter’s insurance, life insurance, etc. Always be sure to ask if there are any discounts for having multiple people/vehicles at once.
5. Be Prepared to Shop
One of the best tidbits of advice for how to get cheaper car insurance (or cheaper anything) is to dedicate yourself to shopping around. You aren’t the one trying to win over your business… they are. Make them work for it.
To get your business, they need to be willing to accommodate you at a reasonable price.
With so many online insurance quotes features, it’s never been easier to gather a bunch of different prices. From there you can analyze the different coverage details and decide which one you want to do business with.
6. Drive Safely
Did your mother ever tell you to drive as if you were getting paid for it? Turns out there was some truth to that statement. Car insurance providers reward safe drivers with lower discounts.
If you get in a car accident, have it broken into, etc., it will raise your rates. But if you stay mindful when you drive, park it in a safe spot, and avoid getting speeding tickets, your provider will reward you handsomely.
You might even consider taking driving courses, as providers offer lower rates to those that have!
Use These Ways to Lower Car Insurance to Your Benefit
Now that you’ve seen all the different ways to lower car insurance, it’s time for you to get started on lowering those rates!
Be sure to consider all these tips. Start by becoming a safer driver and lining yourself up with a car insurance company of integrity.
Also, make sure to browse our website for more articles on saving money, as well as many other helpful topics!