If you feel like your car insurance premium is too high, don’t worry – there are a few simple steps you can take to make sure you’re getting the best deal possible. Get ready to save some serious cash, because we’re about to show you how to lower your car insurance premium! Read on to find out the secrets to getting affordable car insurance.
Let’s start by discussing how car insurance rates are calculated. Many factors play a role in how insurance companies set rates for vehicle insurance, such as:
- Type of Vehicle – Is the car a higher risk for theft or is it expensive to fix?
- Driving Record – Those without any moving violations or accidents usually pay less.
- Credit Score – Used to determine payment risk or likelihood of filing a claim.
- Location – Areas with more car thefts or accidents tend to have higher rates.
- Age – Experienced, middle-aged drivers tend to get lower rates.
Now that we’ve covered how car insurance premiums are calculated, let’s dive into ways that you can save.
Review your current policy
Review your policy every year to make sure it’s still the right fit for you. You might find that you’re overpaying for coverage you don’t need or that you’re missing out on key benefits. For example, as your vehicle gets older, it becomes less expensive to replace in the event of an accident. You might be able to lower your repair coverages like comprehensive and collision. If you owe a minimal amount or have paid off any loans on your vehicle, you may not need gap insurance. Or, if you own your car outright, you may be able to lower or opt out of those coverages entirely.
One of the best ways to save on car insurance is to shop around. Don’t just go with the first company you find – take the time to compare rates and coverage from multiple insurers. Guided Solutions makes this simple by doing it for you! All we need is a little information to get started, and then we’ll show you personalized quote options that fit your needs and budget.
Ask about discounts
Lowering your car insurance premium can be as simple as asking about discounts. Many insurance companies offer discounts for a variety of reasons, such as being a safe driver, having a good credit score, or belonging to certain organizations. Be sure to ask your insurance provider what discounts they offer and see if you qualify. You may be surprised at the amount of money you can save just by asking.
Improve your credit score
Improving your credit score can help you lower your car insurance premium. Insurance companies use credit scores to help determine whether a customer is a reliable risk. Those with higher credit scores are seen as less of a risk and are often offered lower premiums. To improve your credit score, you need to make sure that all of your bills are paid on time and that all accounts are in good standing. You should also dispute any errors on your credit report, reduce your total debt and try to keep your credit utilization ratio low. It may take a few months to see a noticeable difference in your credit score, but the effort will be worthwhile.
Improve Your Driving Record
A good driving record is necessary if you want to get the best rates on your car insurance. Traffic violations make drivers high-risk in the eyes of insurance companies, who will then charge higher premiums.
To improve your driving record, start with the basics: obey speed limits, avoid using your phone while driving, and always wear a seat belt. It’s also important to stay focused on the road and drive defensively. If you do get into an accident, make sure to document it with photos and contact the police.
Once you’ve improved your driving record, you can contact your insurance company to see if they will lower your premium.
Raise Your Deductible
Raising your car insurance deductible is another great way to save. A deductible is the amount of money you pay out of pocket before your insurance kicks in. By raising your deductible, you will be taking on more responsibility for any damages to your car, which can result in a lower insurance premium. It’s important to note, however, that you should only raise your deductible if you can afford to pay it in the event of an accident. If you’re not sure if raising your deductible is right for you, it’s best to talk to your insurance agent and get their advice. They can help you weigh the pros and cons and make an informed decision.
Bundle Your Home And Car Insurance
By purchasing both your home and car insurance policies from the same provider, you can often get a discount on your premium. It’s also convenient to have all your insurance needs in one place, making it easier to manage and keep track of payments. Bundling your home and auto insurance can also help you save money on other items, such as roadside assistance or rental car coverage. And, if you ever need to make a claim, it’s much simpler to work with just one provider.
We’ve helped customers save up to $1200 a year by bundling their home & auto insurance. Want to see how much we could save you? Get started now!