How to Lower Your Car Insurance Rate

Today, we’re going to talk about how to lower your car insurance rate. There are eight easy ways for you to lower the cost of your coverage. First is to shop around for a lower rate. Insurance companies often charge different rates for the same coverage, so your current premium might not be the best deal available. As a general rule, you should comparison shop every 6-12 months and decide if you want to switch providers. 

Next, look for discounts that your insurer offers. Every major insurance company has discounts based on your driving history, vehicle features, and policy choices. For example, you could save just by going paperless and paying online. So make sure you’re getting every discount that you can qualify for.You can also increase your deductible. The higher your deductible is, the cheaper your policy will be. Just be careful not to make your deductible so high that you can no longer afford it.

Similarly, you can reduce your coverage either by lowering limits or eliminating unnecessary types of insurance. For example, if you own a car that isn’t worth very much, you may not need to have collision and comprehensive coverage. Just make sure that you’re still complying with your state’s insurance requirements. Another way to lower your car insurance is to reduce your mileage. Insurers consider mileage when calculating your premium, so think about carpooling or using public transportation. It’s also important to buy an insurance-friendly car. Your car’s make, model, body type, value, and age can all affect how much it costs to insure.

So before you get a new car, get a quote and decide whether or not the cost of coverage fits within your budget. Improving your credit will also lower your car insurance rate. Your credit score is correlated to your likelihood of filing an insurance claim, so insurers in most states take it into account. In fact, drivers with no credit pay 67% more for car insurance than drivers with excellent credit. 

Finally, you can move to another city or state. You probably won’t be moving just to save on insurance, but the area you live in does affect how much you pay. Less densely populated neighborhoods with lower crime rates are considered low-risk, so drivers there will pay less for coverage than drivers in larger cities. I hope you enjoyed this session on everything you need to know about How to Lower Your Car Insurance Rate. So always be sure to contact a professional before making any financial decisions.