Having car insurance today is more important than it ever was. Along with protecting you from the liabilities that could emerge from accidents, having car insurance offers peace of mind knowing that you’ve fulfilled a legal requirement. While car insurance comes with many incredible benefits, you don’t want to pay more than you have to. The good news is that there are easy ways to lower your car insurance rates.
Below is a list of the things that you can do to lower your auto insurance rate:
- Shop around and compare auto insurance quotes
Car insurance rates vary from company to company for the same levels of coverage, so it’s a good idea to shop around. Ideally, you should get at least three price quotes from different companies and make a comparison. The easiest ways to obtain auto insurance rates is to call insurance companies directly, searching online, or contacting your state insurance department for comparisons of rates charged by major auto insurers. You can also ask co-workers, friends, and relatives for recommendations.
- Buy your auto and homeowners coverage from the same insurer
Many auto insurers sell other insurance products like homeowners insurance and renters insurance. Many of these insurance companies offer special rates to customers who have two or more policies with them. Some companies even have special rates for recreational vehicles and motorcycles when you purchase your policies from the same insurer. If you have policies with multiple insurance providers and you want to lower your auto insurance rate, consider moving them all to one insurance company and take advantage of the special rates.
- Maintain a good credit record
In many states, having a poor credit score can significantly increase your auto insurance premiums. Therefore, it’s important to establish a good credit score by paying your bills on time, paying off debt, and keeping your credit balances as low as possible. This will potentially reduce your auto insurance rate.
- Maintain a clean driving record
The most basic way to lower your auto insurance rate is to have a good driving record. If you have traffic tickets or accidents, auto insurance can be really expensive. Do your best to avoid moving violations and avoid accidents to keep your auto insurance at a minimum.
- Choose a higher deductible
You can lower your auto insurance rate by choosing a higher deductible. A deductible is the amount of money you pay out of pocket before your insurance policy kicks in. Generally, the lower the deductible, the higher the annual premium because you’ll pay less out of the pocket. Conversely, the higher the deductible, the lower your insurance rates.
- Take advantage of auto insurance discounts
Most car insurance companies offer discounts that can help you lower your auto insurance rates. Some of the discounts that are commonly offered by car insurance companies include affiliation discounts, driver’s education discounts, good driver discounts, good student discounts, anti-theft devices, and many more.
So there you have it. These are some of the things you can do to lower your auto insurance rates.
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