If you are trying to find effective ways to save on car insurance, you are not alone. Insurance rates vary by numerous factors, including where you live, your age, your gender and more. However, many drivers pay between $800 to $1500 or more per year on an auto insurance policy, and some families have two or more vehicles insured. Finding a way to scale back this expense without jeopardizing the level of protection that your coverage provides is essential. These are some thoughtful ideas to consider if you want to reduce your auto insurance premium.
Improve Your Driving Record
Auto insurance companies analyze their risk associated with insuring you and your vehicle when they determine your rate. One way that they determine their risk is to review your driving record. Some auto insurance providers offer a lower up-front rate if you have a stellar driving record. Others may offer incentives, such as a lower deductible each year that you remain accident-free or a discount for having a spotless record. Remember that many auto insurance companies place more emphasis on recent accidents than on older events, so your focus on improving your driving record now can pay off.
Bundle Your Coverage
Saving on car insurance may also be possible with some providers if you bundle coverage. Some providers only offer auto insurance, so bundling is not a possibility. Others may offer life, home and other insurance products. In many cases, the more policies that you purchase from the provider, the higher your premium discount will be.
Look for Vehicle Insurance Discounts
Most providers offer a wide range of vehicle insurance discounts, but the discounts vary by provider. In addition, the requirements for seemingly similar discounts can vary. For example, you may qualify for a student discount with one provider and not with another based on their requirements for this discount. In addition to a student discount, you may qualify for a low mileage discount, a military or service member discount, a safe driver discount and more.
Request a Higher Deductible
Another smart idea to save on your auto insurance is to request a higher deductible. This option is open to most drivers. You simply have to ask your representative to quote you a rate for a higher deductible amount. Be aware that a higher deductible will make it more expensive to file a claim when needed. Adjust your deductible only to a level that is still comfortable for you to pay as needed.
Buy a Different Vehicle
Your vehicle’s replacement value, repair costs, safety statistics, theft statistics, security features and more affect your insurance rates. The next time you are in the market to purchase a new vehicle, ask your provider for quotes on several vehicles before you make a buying decision. This simple step may help you to keep insurance rates low going forward.
Check Zip Codes When You Move
Where you live also affects your insurance rates. Usually, theft and accident statistics are analyzed down to the zip code. This means that some people may be paying higher or lower rates by simply living a few blocks apart. When you plan to relocate, request an auto insurance quote before you make a final decision about where to live.
You may have thought that you are at the mercy of your auto insurance company with regards to your insurance rates, but this is not the case. There are many factors under your control that affect rates. In addition, you can always shop around to find a better rate on car insurance. In fact, it is wise to compare rates annually for the best results.