How to Get Low Auto Insurance Rates

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Auto insurance is a significant expense for every person that drives a car. However, there is no way around it as it is required by the law. Still, there are some tips and tricks that will help you get affordable auto insurance.

In this article, we will go through all the ways that will lower your car insurance premium.

#1 Compare Plans

First of all, you should shop around and compare plans from different insurers before you decide on a car insurance plan. You will find different prices from company to company, even for the same coverage. Moreover, you should also compare the packages that each company offers. Sometimes, you might get a better price if you go for a fixed package.

#2 Choose a Higher Deductible

This is no secret that deductibles can significantly influence your car insurance premium. If you select a higher deductible your monthly premium will typically be lower. However, a higher deductible means that you will have to pay more expenses up front if you get into an accident. For this reason, it will be beneficial for you to start saving the amount for your deductible so that you are always prepared. Setting this emergency fund aside will leave you prepared in case of an accident, while also paying a lower monthly premium. 

#3 Take Advantage of Special Discounts

In addition to choosing a higher deductible, every company offers you some special discounts that you can take advantage of. For example, if your mileage per year is low, you can claim a discount. Furthermore, you can also get better prices if you have an anti-theft device installed in your car, you are a college student away from home, you have completed a defensive driving course, you have insured more than 1 car, and you are a safe driver. Some companies even reward risky drivers that manage to remain lawful on the road.

#4 Combine your Auto and Home Insurance from the Same Provider

The majority of the providers will offer you more than one type of insurance. Thus, you can get both home and auto insurance from the same company. In fact, all of the companies will reward their long-term customers that choose their service. The same is applied to the customers that opt-in to get both their home and auto insurance from them. These bundles save you enough money and time as you won’t have to deal with different providers.

#5 Consider Reducing Coverage on Older Vehicles

If your vehicle is old and its value is low then you may want to consider dropping collision and comprehensive coverage on your vehicle. This type of coverage is optional if you own your vehicle. You may also choose to only drop one or the other. If you decide to only drop one of them, if you are a safe driver it may make the most sense to only keep comprehensive coverage and drop collision. The reason for eliminating one or both types of coverage is that if you drive an older, low value vehicle, the maximum payout (the value of your vehicle minus the deductible) will likely be very low, and not worth the additional cost of carrying comprehensive or collision insurance.

If you keep these tips in mind when shopping for your auto insurance policy you can potentially lower your rates and save some cash.