With insurance premiums at a national average of $1,510 annually, it makes sense that countless people are looking for ways to lower their insurance costs. If you’re one of these people, check out these tips for paying less on your auto insurance premium.
Choose a High Deductible
One of the biggest factors that will determine your car insurance premium is your deductible. One estimate shows that 19 to 25 percent of people overpay for insurance by choosing plans with low deductibles. The lower your deductible, the higher your insurance rates. Luckily, you can choose the deductible you want; the higher you go the less you’ll pay in premium costs.
Compare Insurance Rates
Comparing insurance rates is an important step to finding the cheapest coverage, but a lot of people miss this step and simply go with recommendations from friends or choose the company closest to them. The problem with this is that insurance companies use such extensive algorithms that your insurance rate is never the same as anyone else. This means that just because your friend found the cheapest rate with one company doesn’t mean that you will too.
By comparing insurance rates before committing to a policy, you can get a better idea of which company will offer the cheapest rates in your situation. To compare companies and get free local insurance quotes, you can receive ENTER SITE HERE easily online. This site will help give you advice and guide you on picking out the best insurance for you.
Consider Your Credit Score
You’ll also find out that your credit score plays an important role in determining your insurance premium. If you haven’t done so already, order a copy of your credit report and check it for errors. If you see any errors, try to get these resolved as quickly as possible with your creditors, and then work toward improving your credit score to lower your premiums.
Ask About Discounts
Insurance companies often feature a range of discounts, but you may not get them if you don’t talk to your agent. Once you know what discounts you qualify for, you can send in the necessary documentation to start receiving the discount. In many cases, you can save 15 to 25 percent or more with discounts. Some common discounts include:
- Good Driver: Available to those without accidents in the last 3 to 5 years.
- Good Student: For current students with a good GPA (often 3.0 or higher).
- Bundling: Available to people who have more than one policy with the company.
- Long-term Customer: For people who have been with the company for several years.
Change Your Coverage
Another factor that plays into how much your premium costs is the type of coverage you choose. Oftentimes certain coverage, such as comprehensive and collision coverage, aren’t worth paying for if you have an older car. In this case, if your deductible is more than your car is worth, you’ll be wasting money on insurance that will never kick in. Determine how much your car is worth to decide whether it pays to have extra coverage.
With these tips, you can save quite a bit of money each year on your insurance.
Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea