You’ve probably noticed that some people get lower auto insurance quotes than you do when they seem to be in the same situation as you. Here are 16 things you can do to reduce your auto insurance premium.
- Go around the market
It’s a matter of common sense that shouldn’t be there. But life is hectic, it makes people skip it or don’t do it well. What one company considers a high risk, another considers a medium risk. The price difference can be significant.
Each company asks you the same questions about your driving habits and where you live. But each company may have a different perspective on each answer you give. That’s why you need to look around the market. Just make sure all the auto insurance quotes you get are for the same coverage.
- Buy a lower-risk car
Insurance companies take your car into account when you get car insurance quotes. That makes sense. They group cars by risk. There are 20 different groups. As a general rule, the lower the risk they assign to your group of cars (that is, the higher the score), the lower the auto insurance quotes you’ll get.
Some car models are stolen more often than others, some have a worse accident rating than others, some are involved in more accidents than others (you are much less likely to have a drag race with a Dodge Caravan than with a Mustang).
3. Consider getting only the minimum coverage required by law.
The minimum coverage required by law is the least expensive. If you have an old car that no longer has much value, you must take out insurance that covers the other car, other people, not your old jalopy. If the value of your car is less than what it would cost you to cover it for a year, should you cover it?
- Keep your credit scores high
An insurer I know ensures that there is a close correlation between credit scores and the chances of you making a claim. That’s why, he says, insurance companies today rely on credit scores to determine the type of risk you represent.
Whether you agree with him or not, know that the lower your credit score, the higher the auto insurance quotes you’ll hear.
- Buying Online
You can find cheaper car insurance quotes online these days. Many insurers offer discounts for online purchases: they save money because you don’t involve a human being (human beings need wages). In addition, you save them money on their phone bill.
- Increase your franchise
This one is easy to understand. The higher your deductible, the less the insurer pays. The less they pay, the less they can afford to get car insurance quotes. Of course, in the event of a claim, you pay more out of your own pocket.
- Drive less
The more you drive each month, the more likely you are to be in a car accident. At the very least, don’t overestimate. Don’t lie about them (it’s neither legal nor pleasant) but count them well.
- Have a clean driving record
The auto insurance quotes you get also depend on it. The more you are caught speeding, the higher the quotes, etc. And it goes without saying: statistically, people with a clean driving record have more accidents than those with a clean record.
- Don’t make small claims
People claim small things. You buy insurance to be protected against big expenses, expenses that you can’t, or can’t easily pay. For some people, a $1,000 payment is a lot. But if you can do it, do it. Insurance companies raise your premiums if you make claims.
- Insure the real value of your car
If your car is worth $15,000, your insurance policy should cover $15,000. If you estimate the value of your car at $20,000 and it’s worth $15,000, you will only get $15,000 back if it’s totalled. But you pay a higher premium. So don’t pretend your car is in good condition if it’s in average condition.
- Reduce the number of additional drivers named on your policy
If you can. The greater the number of people covered, the higher the premium because the risk of having a claim increases.
- Improve the safety of your car
Most insurance companies will give you a discount if you have a car alarm, if you park your car in a garage that is not on the street, if you have a tracking device. The discount varies depending on the theft prevention item you have.
- Don’t pay your premium in installments
When you pay your premium over several months, your insurance company adds a few dollars to each monthly bill. It may not be a lot each month, but there are 12 months in a year, so it adds up.
Don’t just act to reduce your premiums. But auto insurance quotes are based on where you live, so the next time you move, talk to your agent about the neighbourhoods in which you plan to live. Vandalism and car theft are more common in some neighbourhoods than others.
- Get good grades
If you’re young, you’re going to hear some pretty high auto insurance prices. You can lower them a little by being a good student.
The more you do, the lower the car insurance rates will be.