5 Tips For Lowering Auto Insurance Rates
A few tips to lower your auto insurance rate are to drive safer, park your car in an enclosed garage, have a good credit rating, and pay your premiums one time. There is an auto insurance policy to suit your needs. Compare prices to find the best deal. If you have a clean driving record, no tickets or accidents, some companies will offer a lower rate.
When you increase your deductible on your car insurance, you can potentially lower your monthly premium by 20% or more. You should be aware that raising your deductible too much is not a good idea. Increasing your deductible will also increase your out-of-pocket expenses and financial stress. This can be a problem for people who live on a tight budget. No matter what reason you have for increasing your deductible, it’s best to consult an insurance agent before making major changes to your policy.
Place your car in a garage
Parking your car in a garage is one way to decrease your auto insurance rates. It is a good idea for several reasons, including lowering your chance of theft or vandalism. While it is important to secure your car, it will not necessarily lower your insurance rate. Parking your car in a public parking garage is one example of a risk. Someone could strike your vehicle and cause serious damage. A garage is a better option than parking your car in an open area.
Maintain a good credit score
Your insurance premiums could be significantly increased if you have poor credit. On the other hand, maintaining a good credit score can help you save a lot of money. One study found that drivers with poor credit saw their rates rise by 61% when compared to drivers with good credit. The opposite was true for drivers with excellent credit who saved more than 17% per year. These effects vary for different states and insurance companies.
You can pay your premiums in one lump sum
Insurance companies offer discounts if you pay your premiums one-time and not in monthly installments. This can be a great way to save money if your income is inconsistent or you have difficulty keeping up with your monthly payments. For example, Progressive offers a discount for paying your premiums in one lump sum. Other insurance providers may offer discounts if your premiums are paid automatically or you download your policy documents electronically.
Avoid sporty or expensive cars
There are many ways to lower your auto-insurance rate. However, it is important to avoid expensive or sporty cars in order to save money. Due to their high repair costs, sports cars can have high insurance costs. In the event of an expensive sport car accident, insurers are more likely pay large claims. Insurance companies take into account the cost of repairs, as well as the likelihood of damage to other vehicles.
Take a defensive driving course
Your monthly car insurance rates will be lowered by taking a defensive driving course. However, this depends on the laws in your state. Many insurers require a clean driving history before they will grant a discount for driver training. While there is no guarantee your policy will be approved for the discount offer, many do. Your policy will be eligible for the discount if you take a defensive driving course. You can also receive a greater discount if you take multiple courses.