UPDATED: APRIL 27, 2023 | 3 MIN READ
Car insurance premiums are a necessary evil that no one wants to deal with. But having car insurance is essential to protecting you and your car. Whether you have full-coverage on your vehicle or just liability, you want to ensure you get the best deal. Here are seven ways to lower your car insurance premiums.
1. Shop Around
Shopping around for car insurance is no different than shopping for grocery store sales. Even if you have car insurance currently, you should always shop around before your renewal date.
You might think all insurance companies are the same, but that’s not true. The same coverage at different companies varies, and it’s always best to get at least three different quotes before deciding.
2. Multi-Car Discounts
You might end up paying more for one vehicle on your policy than more than one. Insurance companies offer discounts on car insurance premiums if it means they are getting more of your business. So the more cars and drivers on your policy, the better.
Typically, all drivers have to be living in the same residence. You won’t see a discount if you add a teen to your policy; they will likely have a higher car insurance premium.
However, if your child is an above-average high school or college student, they receive discounts that range from as little as 1% to as much as 39%. Make sure to prove to your agent that your teen is an excellent student.
3. Ask For A Higher Deductible
Deductibles are what you have to pay when an accident happens or when you are making a claim on your vehicle. If you ask for a higher deductible, it lowers your car insurance premium. For example, if you were to raise your deductible from $200 to $500, you reduce your coverage cost by 15 to 30 percent.
If you go to a $1000 deductible, you save up to 40 percent on your car insurance premium. Make sure you have the money aside to pay the deductible if something happens.
4. Be Careful When Driving
A clean driving record is the best way to have low car insurance premiums. Be mindful of the road, and do your best to avoid accidents and speeding. These are the things that raise your rates. Some insurance companies like Travellers offer 10-20% safe driver discounts depending on your driving record.
5. Take A Defensive Driving Course
Taking a defensive driving course is a great way to get extra discounts. It also helps you reduce points you might have on your record. Check with your provider before taking the course to ensure they offer the discount and how much it will save you. You want to ensure you’re not spending more than you are saving.
6. Get Discounts for Installing Anti-Theft Devices
If you install an anti-theft device on your car, you are eligible to get discounts on your car insurance premium. For example, GEICO offers roughly 25% off if your vehicle has an anti-theft system.
It’s best to ask an agent what devices can lower your premiums. LoJack’s and car alarms are two devices that you should inquire about.
If it’s not something you were considering before, find out first if the savings is worth the device’s cost before installing it. You don’t want to add it to your vehicle and not save enough to cover the expense.
7. Research Other Discounts
Insurance companies offer a lot of different discounts. You get a discount on your car insurance premium if you:
- Agree to receive e-bills and documentation
- Pay your premium annually or every six months
- Some memberships to groups and organizations give extra discounts
FAQs
Why is my car insurance so high?
There are a few reasons why your car insurance premium is so high. For example, if you have a bad driving record, a low credit score, are a new driver, live in an area with an increased risk of claims, or are driving a sports car.
Why did my car insurance go up?
There are a few reasons your car insurance premium might go up. For example, if you have previous claims on your record, you moved to a large city, are recently divorced, live in a place with more traffic density, or have recently added a teen to your policy.
Can insurance premiums be reduced?
There are many discounts that insurance companies have, such as premier driver discounts and anti-theft discounts. Improving your driving record is also a great way to reduce your rate.
Is insurance cheaper if you own the car?
If you own your car, you can decrease your coverage because you’re not required to have comprehensive or collision coverage. If you lease or loan, your financing company typically requires you to have both.
Should I have full-coverage insurance if my car is paid off?
No. You don’t need full coverage if the car is paid off. It’s only required if your vehicle is not paid off as your lender requires it.
Find Coverage With Lower Car Insurance Premiums Today
Finding coverage with lower car insurance premiums isn’t difficult. To make sure you get the lowest rates possible, get several car insurance quotes today.
