If you’re looking for ways to cut expenses while still prioritizing financial protection, it’s important to understand how to reduce the cost of your car insurance effectively. Whether you're a seasoned driver or a new car owner, navigating the complexities of car insurance premiums and coverage options is essential for optimizing your budget. From leveraging discounts to making informed coverage decisions, a proactive approach to saving on car insurance can yield substantial long-term benefits. In this article, we’ll provide tips to help you save money on car insurance rates so you can find the coverage you need at a price you can afford.
Twelve Tips to Lower Your Auto Insurance Rates
When you’re ready to lower your auto insurance premiums, you have several strategies to consider. Here are some tips to help you secure lower rates:
1. Shop Around
Compare quotes from multiple insurance providers to find the most competitive rates. Different insurers offer varying discounts and pricing structures, so exploring your options can lead to significant cost savings. Working with an insurance brokerage like SelectQuote makes it easy to quickly review your options and compare quotes from several carriers all in one place.
2. Consider Bundling Your Insurance
When you’re trying to reduce the cost of your rates, consider bundling your auto insurance with other policies, such as homeowners or renters insurance, from the same provider. Whether you also need home insurance or have another mode of transportation to insure, bundling your coverage can typically help you save money.
3. Insure Multiple Cars Under Same Auto Insurance Policy
Car insurance companies generally offer a bulk rate for insuring multiple cars under one policy. Whether your spouse or a child has a vehicle to insure, it can be beneficial to see if your carrier offers discounts for insuring more than one car on a single policy.
4. Increase Your Auto Insurance Deductible
Your deductible is what you pay out-of-pocket before your coverage kicks in. This means that choosing a higher deductible can lower your insurance premiums. However, it's important to ensure that you can afford the deductible amount in the event you need to file a claim.
5. Reduce or Remove Optional Coverages
If you have an older or more rundown car, you may consider dropping collision and comprehensive coverage, which pay for damage to your vehicle. If your car is worth less than your deductible plus the amount you pay for coverage annually, it could be time to drop collision and comprehensive coverage.
6. Drive a Safe Vehicle
Vehicles equipped with safety features such as airbags, anti-theft devices, and advanced safety technology may help you qualify for lower insurance premiums. Not only can these features minimize the risk of injury to occupants in the event of a collision, they can also mitigate the extent of damage to the vehicle. Insurance companies consider these safety features as risk-reducing factors, which can lead to lower premiums.
7. Consider Usage-Based Car Insurance Apps
Some insurers offer usage-based insurance programs that track your driving habits. Usage-based car insurance apps, like Progressive Snapshot, often provide discounts for safe driving practices. If you’re a safe and low-mileage driver, you may be eligible for discounted rates through these programs.
8. Keep Up With Car Maintenance
When it comes to your car, little maintenance oversights can turn into costly repairs before you know it. Keeping up with basic maintenance, like oil changes and routine tire pressure checks, can prevent car issues from negatively affecting your car’s performance and value, which can help you save on insurance in the long run.
9. Maintain Good Credit History
Credit scores are one of the many factors that can have an impact on your car insurance rates. Having a good credit score shows your ability to pay bills on time, repay borrowed money, and that you are less likely to need to file a claim. While you can’t be denied car insurance because of a low credit score, you could benefit from discounts and better rates if your credit score is in good or great standing.
10. Research Car Insurance Rates
Car insurance rates are based on broad categories of drivers and then are further modified based on individual risk factors. To make sure you’re getting the best rate available to you, it’s important to understand the various factors that can influence your car insurance rates.
11. Take a Defensive Driving Course
Completing a defensive driving course not only enhances your driving skills but also makes you eligible for insurance discounts with certain providers. These discounts are typically provided as an incentive for drivers to improve their driving skills and safety knowledge. The percentage of the discount can vary by insurer, but it often ranges from 5% to 15% of the policy's premium.
12. Enroll Your Young Drivers in a Driver’s Ed Course
Young or new drivers can be the most expensive drivers to insure. Not only do insurance companies offer discounts for completing driver’s education courses, but your young driver will also learn valuable driving habits that will keep them safer on the road.
Let SelectQuote Help You Find Affordable Car Insurance
Finding auto insurance can feel overwhelming, especially if you’re trying to save on your rates. Fortunately, SelectQuote is here to help. With nearly 40 years of industry experience, our licensed insurance agents will provide you with rates from several of the most trusted carriers in the nation. In just minutes, they can help you find the affordable car insurance you need.
