10 Tips To Lower Your Car Insurance Costs

The necessities of life, like gas, rent, and cell phone service, cost money. The same applies to car insurance. While you can look for discounts when purchasing other kinds of products, you may search for ways to lower your costs on car insurance.

When you're a good driver and find an inexpensive car insurance rate, you can save 5 to 10 dollars on average. In many cases, reducing your car insurance costs by 30 percent or more is possible. To make this possible, try adhering to 10 tips listed below.

1. Shop Around

We're going to search for bargains in electronics, clothing, and other goods. We can use the same approach to searching for car insurance.

Whether you are enrolling, reengaging, or changing insurance companies, don't overlook the benefits of comparing rates.

Because insurance rates are variable, you won't understand exactly how much you can save unless you shop around. The industry-backed Insurance Information Institute recommends requesting quotes from various insurance providers in order to compare insurance premiums and coverage.

Be sure you are comparing identical policy benefits and limits, so it's an apples-to-apples price-comparison.

2. Review Your Deductibles

From USAA, Rebekah Nelson advises reviewing the deductibles attached to your current coverage to see if you may be able to raise them.

Yet if you haven't seen a recent strategy, you may find a higher deductible is appropriate and reduce your premium, says Nelson.

The amount of insurance deductible acquired after filing a claim wholly or partially is the amount taken from your insurance claim. You must choose your deductible when purchasing a policy, and you can modify your deductible later if you change your mind. A higher deductible means you pay less for insurance. Because you're increasing your responsibility by asserting a claim, your odds of making claims for minor damages decrease because your repair costs will not exceed your deductible.

The Insurance Information Institute suggests raising your deductible from $200 to $500 could lower the cost of your collision and comprehensive insurance policies by about 15 to 30 percent. Furthermore, upping your deductible even higher, to $1,000, could result in savings of about 40 percent.

The Institute also notes that increasing your deductible means setting aside enough cash if you make a car insurance claim. For example, let s say that your insurance payment for a crash is $5,000 and your deductible is $1,000. Your insurer will pay $4,000, so you will be responsible for $1,000 in out-of-pocket expenses to fix your vehicle damage.

3. Bundle Insurance Policies

Commercials will often advertise the ability to bundle home and auto insurance policies. Most insurance companies provide discounts for policies that contain both auto and house coverage, and this kind of bundling can apply to other types of insurance coverage, including motorcycle and boat insurance.

A bundling discount (also known as a multi-policy discount) can typically save 5 to 25%.

In addition, you might be able to transform your insurance plan by joining more than one policy from a single company. Nelson elaborates.

4. Explore Car Insurance Discounts

Insurance companies offer many discounts apart from loyalty-based discounts. Some of the most common discounts are bundling discounts:

• Multi-car discount. Including more than one vehicle on the same insurance policy may yield savings of 8 to 25 dollars.
• Vehicle safety discount. If you secure your automobile with anti-lock brakes and airbags, you could qualify for a substantial savings.
• New car discount. Are you driving a car that is less than three years old? If so, you could receive a discount of 10 to 15 dollars.
• Good driver discount. If you do not report an accident or evasion for a period of time, your car insurer might offer you a discount of 10 to 40 percent.
• Good student discount. Good grades may pay off. Some insurers will extend a discount starting from 8 to 25 percent to a full-time college student who is 16 to 25 years old and receives a B average.

5. Let Your Insurer Track Your Driving

Some car insurance companies enable you to reduce your expenses by signing up for usage-based insurance. These programs use an application or device that plugs into your car to monitor the driving behavior of your vehicle. Factors monitored may include how many miles you drive, your speed, and how often you slam on the brakes.

You may qualify for a discount depending on the results of your driving data. Some examples of usage-based car insurance include Snapshot from Progressive, State Farm's Drive Safe & Save and Allstate's Drivewise.

In certain cases, usage-based insurance will raise your insurance rates, according to a report published by TransUnion in 2022. Usage-based auto insurance is a good option if you live a low-mileage life and only drive in a safe manner.

6. Take a Defensive Driving Course

Successfully completing a defensive driving course that has been confirmed by your insurer might lead to savings on your vehicle insurance policy. For example, a driver in Texas who graduates from an online defensive driving course approved by Geico can secure a 10% discount for 3 years. In New York, you can reduce the amount of your insurance payment for three years by earning a driving-safety course certificate.

7. Park in the Garage

Some car insurance companies view parking a vehicle in a garage as a sign that you have deterred the likelihood of car theft or crashes. Data shows that cars parked in garages are less prone to being stolen or become damaged.

8. Drive a Safe Car with Low Repair Costs

When shopping for a car online, or just in person, consider the possibility of getting a different type of vehicle. Some vehicles are more affordable to insure than others.

The insurance agencies base the price of your coverage on factors such as your age, driving history, and the type of car you drive. They consider the likelihood of theft, the average cost of repairs, the safe history of your car, and the factors that have been insured for similar models.

The Insurance Institute for Highway Safety makes safety ratings for thousands of vehicle models and shows statistical information comparing the model in question to other vehicles. The National Insurance Crime Bureau annually lists the most stolen cars.

9. Boost Your Credit if Possible

Most jurisdictions let insurers use credit-based insurance scores to determine the rate and price of your policy. The scores refer to the likelihood of you filing an insurance claim. The lowest your rating is, the more likely you are to file an expensive claim. If your traditional credit score rises, your score card may also be able to aid your insurance rates improve.

10. Pay Your Premium in Full if Possible

Instead of spreading out your premium payments by paying monthly, consider paying your premium at one time. Several insurance companies will give you a little discount for doing it. Progressive, Allstate, American Family, and Farmers are among the major insurance companies that provide a discount for this.