Auto insurance rates can be high for a variety of reasons. Auto insurance companies look at several factors to determine how much you will pay in premiums and deductibles, some of which are out of your control and others within your power to change.
Factors that Contribute to the Cost of Auto Insurance
- Your driving record
- The car you drive
- The amount of coverage you choose
- Where you live
- Your age
- How often do you use your car
Five Ways to Save Money On car insurance
Shop Around For Auto Insurance Quotes
The first step in saving money on car insurance is to shop around for auto insurance quotes. Auto insurance companies compete for your business and will likely offer you a lower rate if they know it means getting the sale over their competition. If you’re looking to save money, consider shopping around from provider to provider every year or so to see if you can get a lower rate.
One way to save time while shopping around is to use an online comparison tool. These tools allow you to input your information once and receive quotes from multiple companies. You can then compare the rates and choose the best option for you.
Consider Your Auto Insurance Coverage Amounts
There are six types of auto insurance coverage: liability, collision and comprehensive, medical, personal injury protection (PIP), uninsured motorist bodily injury (UMBI), and uninsured motorist property damage (UMPD). The first two cover vehicle damages from accidents. Medical covers injuries sustained in an accident. PIP covers medical expenses from an accident regardless of who is at fault. UMBI and UMPD cover damages if you’re involved in a collision with an uninsured driver.
The more coverage you have, the higher your premiums will be. So it pays to consider what type of plan makes sense for you and how much you can afford to pay out of pocket if you are in an accident. You can constantly adjust your policy later as needed.
Consider Auto Insurance Discounts
Many auto insurance companies offer discounts on their premiums. Standard discounts include safe driver, anti-theft device, and multiple policy discounts. The discount you receive can vary from company to company. Therefore, when shopping for coverage or adjusting your current policy ask the agent how much of a discount you may qualify for. Some insurers also offer discounts for good credit scores, so if you’re looking to save money on your premiums, be sure to maintain a good credit score.
Raise Your Deductible Amount
One way to reduce your premiums is to raise your deductible amount. A deductible is an amount you have to pay out of pocket before your insurance company begins covering costs. The higher your deductible, the lower your premiums will be.
Keep in mind that if you raise your deductible, you’ll also need to have enough money saved up to cover it should you need to file a claim.
Bundle Your Auto and Home Insurance Policies
Another way to save money on your car insurance premiums is to bundle your auto and home insurance policies. Many insurers offer discounts if you purchase multiple policies from them. It can be a great way to save money, especially if you have a good credit score and are eligible for additional discounts.
Wrapping Up
Saving money on car insurance is possible for all consumers, regardless of credit score. However, those with low credit scores can have a more difficult time finding affordable rates.
If you follow the above strategies, you can reduce your car insurance costs, even with a low credit score.
Remember to shop around for the best rates and be sure to compare quotes from multiple insurers. And finally, stay vigilant about monitoring your credit score so you can continue to make improvements over time. You can save hundreds on your car insurance premiums each year with a bit of effort!
If you have any questions or want more information, please don’t hesitate to contact us. We’re always happy to help!
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