Learn about these 12 effective ways to lower your car insurance rate
If you own a car, having a car insurance policy is essential to protect you financially if you ever get caught in a disaster while driving your car.
But it’s also important that you get the best possible car insurance deal for any type of coverage.
If you don’t know how to lower car insurance rate, here is a guide explaining all the necessary steps you can take to ensure you get the best possible deal for your policy.
11 Ways To Lower Car Insurance Rate
The best way to reduce your car insurance cost is by having a good driving record. But there are other things too that can help you in keeping your auto insurance rate down. Here are some of those.
1. Take Time While Shopping For Car Insurance
Car insurance rates vary from one company to another. So it’s always wise that you take some time while shopping and get several quotes from different companies and compare them.
Your policy should effectively protect you and should also provide peace of mind. This can only be achieved if you get the policy from a company that is financially strong.
You should check the financial health of a company before buying a policy from them with rating companies like AM Best and S &P.
But don’t only stop on getting a reasonable price. Always ask your friends and relatives about the insurance provides they recommend.
This way, you will get a policy from a company that cares for you at an affordable price.
2. Choose A Car With More Safety Features
Having a car that has more safety and security features like airbags, anti-theft system, antilock brakes, etc attracts a lower car insurance rate.
Safe and secure cars have fewer chances of accidents or being stolen. This is why insurance companies give discounts on car insurance for such cars.
If you don’t have a car with such safety features, you can always install them before buying a car insurance policy for your car.
3. Ask For Higher Deductibles
The deductible is the amount that you pay before your insurance policy comes into play.
Generally, the higher the deductible, the lower your insurance premium will be.
Normally, you can choose a deductible between $250 to $1000. Consult with your agent on how choosing a deductible will affect your premium.
It might save you some money by lowering your annual premium.
If you don’t think of filing smaller claims to keep your premium in check, setting a higher deductible will be a wise move.
4. Complete A Defensive Driving Course
Some auto insurance companies provide discounts to drivers who successfully complete defensive driving, accident prevention, or other such courses from an accredited institution.
This also helps drivers in reducing the number of points on their licenses.
But before you sign up, make sure that your preferred company provides a discount for taking such a course.
Senior citizens and teenage drivers are typically found enrolling for these courses but any age group driver can benefit from it.
5. Get A Low-Cost Vehicle
Getting a high-end SUV may be your dream but this can be costly from the insurance point of view.
Expensive cars attract expensive premiums. Insuring a low-cost commuter car is a lot more cheap compared to a luxury SUV.
Some insurance providers also offer a discount for purchasing a hybrid or electric vehicle. This way, you will save money and will also help in keeping the environment clean.
6. Keep Your Vehicle In A Garage
Several auto insurers give discounts to people who park their car in a garage instead of keeping them out in the open.
Data shows that it’s less likely for a car to be stolen if it’s parked in a garage rather than on the street or in the driveway.
7. Get Homeowners And Auto Insurance From The Same Provider
Many companies will give you discounts if you buy more than one policy from them.
For example, if you buy homeowners insurance policy and auto insurance policy from the same company, you will become eligible for a multipolicy discount.
You may also get a discount if you have insured more than one vehicle from the same insurance company.
Also. some companies may lower car insurance rates for their long-time customers.
8. Be A Safe Driver
Be attentive on the road while driving. This does not need to be told but it has to be said more often in the present as the world has become full of distractions.
The more attentive you are, the less chance you have of getting caught in an accident.
This way, you won’t break traffic rules, and get any points on your license which will help you in getting a lower car insurance rate.
9. Drop Any Coverage You May Not Need
You may not need every type of coverage in your policy such as roadside assistance or car rental coverage.
Talk to your agent to remove any unnecessary coverage from your policy. This will save you a fair amount of money.
10. Get Benefitted By Low Mileage Discount
Some insurance companies will offer you a discount if you drive less than a fixed number of miles in a year. This is also applicable for drivers who carpool to work.
11. Discount For Good Grades
If a student is getting good grades, he or she can become eligible for a lower car insurance rate.
For this discount, the student should be generally under 25 years of age and unmarried.
Consult your agent for ways to reduce the car insurance rate if you have a young driver on your policy.