While shopping for auto insurance, we try our best to negotiate a lower rate, but sometimes, it is beyond our control. Quite a lot of factors influence car insurance rates, but a few loopholes here and there can help you decrease it significantly.
Take a look at how to lower car insurance rates:
1. Never agree to the first estimate you come across. Take your time and shop around to get a general idea of the rates. It would be frustrating to find out you could have ended up with a lower quote had you researched for estimates at 3 to 4 places. Nowadays lower-priced companies often have the best service rates.
2. Don’t make the mistake of evaluating auto insurance costs after purchasing the vehicle! Plan it out beforehand – year, make and model of the car affect the insurance rate. Even though new cars demand more premiums, discrepancies found while comparing rates of insuring similar cars can work in your favor.
3. Try to pay more when it comes to deductibles.T For instance, a $250 to a $1,000 jump in deductibles can help you save anywhere between 25% and 40% on your policy.
4. Firms take credit scores seriously while calculating rates. Bad credit rating works against you, which means you could wind up paying a heavy insurance rate due to your poor credit history. Pay bills on time and stay debt-free to maintain a good score.
5. A short lapse in coverage can bar you from availing discounts. All insurance bills need to be paid regularly, or else these lapses will be used to boost the premium. While switching providers, don’t quit your previous company till the new coverage comes into effect.
6. There might be low-mileage discounts if your yearly mileage is less than the stipulated number. Some companies offer reduced rates based on that, so make sure you inquire about it.
7. While installments might be a convenient option, most places slap an administrative fee for this type of payment. Ideally, you should pay your premium up front if possible.
8. Seek Teen Driver Discounts. Insuring a teen driver can be expensive, but there are things that you can do to minimize the expense. Ask about a good-student discount if your teen carries a B average; then, check to see if taking a safe driving course could result in a second discount. These two questions could net you a savings of 5 to 25%.
9. Skip Monthly Bill Pay. The high cost of insurance may make monthly bill pay seem like a good idea, but you’ll usually pay for the convenience with add-on fees. To avoid these extra charges, request to be billed every 6 or 12 months instead (and ask for auto-billing to save even more).
Note: If the large bill makes you nervous, you can set up your own monthly bill pay. Just divide your premium by twelve, and deposit that amount into a savings account each month. This will ensure that you’ll always have the money when the bill comes due.
10. Protect Your Car from Theft. Garage-kept cars and cars with alarm systems are less likely to be stolen, and therefore less expensive to insure. Be sure to ask your insurance agent if your car qualifies for a theft-deterrent discount.
Did you know? Some insurance companies will give you a discount if you etch your car’s VIN number on the windows, install wheel locks or have an ignition cutoff switch.These lesser-known discounts are certainly worth asking about.
What you pay for auto insurance depends on a lot of things, including your driving record; how much you drive your car; where it’s parked; where you live; what type of car you drive; your age; your sex; your credit score; and of course, the type and amount of coverage.
Yes, auto insurance is complicated, but with the helpful hints on the following pages, you might be able to save a few bucks.
Remember not to be lured in with the promise of too-good-to-be-true rates. While it is fine to focus on how to lower car insurance rates, don’t overlook the fact that the company offering the highest discounts might have the highest rates too (something they will try to slide by you while elaborating on the discount). Conduct thorough research and weigh your options before deciding.