1. Getting Multiple Quotes
Getting quotes from multiple insurance companies seems like an obvious starting point. But, most of us just stick with the same carrier because we think of it as a bill that we are forced to pay and we just pay it each month. You might be surprised, however, by how much premiums can vary. As part of a study of car insurance in California, a group compared auto rates for various hypothetical drivers. In one case, the quotes for an identical policy ranged from $504 a month up to $1,488. You can add up the savings, but that is something worth shopping around for.
2. Increasing Your Deductible
Another way to cut auto insurance cost is to increase your deductible. Moving from a $250 deductible to a $500 deductible can save hundreds per year. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more.
3. Buy The Best Car
Numerous factors are taken into consideration when an auto insurance company provides you quote, like where you live, your driving history, age, and miles driven. The car you drive is also considered. Thanks to their strong safety records, some vehicles are cheaper to insure than others.
4. Keep Your Credit It Good Shape (No this is not a myth)
Having a great credit score can lead to cheaper rates on your car insurance. There are some states that don’t take this into consideration but definitely use it to your advantage when getting quotes. Turns out, for the past 20 years or so, auto insurance companies have been using credit scores to determine how much we pay each month. So what on earth do the two have to do with one another? Here is the answer – There’s a correlation between your credit score and how likely you are to file a claim, and insurers use this correlation as the reason for the practice of raising rates for drivers with bad credit.
5. Never Let Your Coverage Lapse
Having a lapse in coverage can cause your rates to increase when signing up for insurance again. But, also having continuous coverage can help to lower your rates in the long run.
6. Always Try To Bundle
Almost all insurance companies give discounts to customers that have more than one policy with their company. If you have a life insurance policy or homeowner’s insurance policy with a different company, ask them how much you would save by having all of the policies at one single company. In many cases, bundling all of your policies at one company can save you up to 15% or more on all of your coverage needs.