Suppose you have a car, car insurance you need, and plan to drive. Car insurance is required to protect you financially when you're behind the wheel. Whether you have comprehensive auto coverage or just basic liability insurance, try to get the best deal possible.
You were wondering how to get a lower car insurance rate? There are several strategies you may use to save on auto insurance. Once you know how much car insurance is for you, you can put some or all of these tactics to work. Here are five strategies you can use now to save on car insurance costs.
1. Get A Quote to Find Out What Your Rate Could Be
If it's your first time getting car insurance, or if you already have an existing policy, it's good to get a new auto insurance quote. Yes, it's possible to get an estimated car insurance quote while you're still shopping around. Although the quote will only be an estimate, it can still provide you with a good indication of the price you're likely to pay.
Most reputable car insurance companies will be happy to provide you with a quote by phone or online. You will need to provide personal information like your age and where you plan to drive and park your car. The agent will also ask for details like the car's year, make, and mileage. The whole process should take about 10 minutes or less.
2. Cut Back on Extras You May Not Need
If you drive an older car, it might be time to drop comprehensive and collision insurance. These coverages pay for damage to your vehicle. Comprehensive insurance pays if your car is stolen or damaged by vandalism, storms, or by hitting a deer or other animals. Collision insurance pays to repair damage to your car if it crashes into another vehicle or object.
If your car is worth less than your deductible plus the amount you pay for annual coverage, it's time to cut them. Comprehensive and collision never pay out more than your car is worth. Figure out whether it's worth paying for coverage that may pay you back only a small amount if anything.
3. Change How You Pay
One of the easiest ways to lower your car insurance premium is to change how you make your payments. Most national insurance companies offer discounts if you do the following:
Get paperless statements by email
Pay a full year instead of monthly payments
Sign up for automatic payments
Depending on the company, drivers who take advantage of these easy-to-get car insurance discounts could save as much as 15%. Be advised that some insurance companies will place a limit on how much you can save with discounts. Some will only give signup discounts on your first twelve-month or six-month bill.
4. Consider Usage-Based Insurance
If you don't drive a lot, you should consider an insurer that offers a pay-per-mile or usage-based driving program. These insurance policies base rates on how often you drive and, in some cases, how well you go. You just install a small device in your car that transmits data to the insurance company to participate. You score a discount for safe driving habits and low mileage.
Most of the larger car insurance companies offer this type of program. Some include Progressive, Allstate, Geico, Esurance, and others. You typically pay a base rate plus a per-mile rate with pay-per-mile coverage. With these programs, the insurers track your driving habits such as hard braking and speeding and offer reduced rates or discounts for your safe driving. In some cases, you can get a discount just for signing up.
5. Choose A Higher Deductible
Choosing a higher deductible is the fastest, easiest, and most absolute way of lowering your monthly premium on your car insurance. Generally, the higher your deductible (the amount of your claim you will pay out of pocket), the lower your insurance premium. Some drivers don't like having a high deductible because they worry they wouldn't have enough money to cover the cost in case of an accident.
Auto insurance coverage includes a deductible, the amount the insurance company deducts from your total payout if you file a claim. Car insurance companies will offer multiple options for your deductible amounts when you purchase your insurance. If you can afford it, choosing a higher deductible to reduce your premium may be worth it. However, make sure you can afford the deductible if you have an accident.