How To Keep Your Car Insurance Premiums Lower
Many people wonder if they are paying too much for their car insurance premiums and are looking for ways to cut costs. There are several factors to explore that could lower your monthly costs significantly and keep them lowered. This same advice works for single drivers and people who carry a family plan.
#1. Take Your Time And Shop Around
There are many auto insurance companies to choose from and each will have their own premiums and policy options. Compare based on price, service and consumer ratings. You can shop many companies at once by using a trusted insurance broker who has access to many plans at once.
#2. Don’t Carry More Insurance Than You Need
If you have an older car, it might be time to drop the full or collision coverage. Check your policy for other extras you might not be using as well, especially if you are a low mileage driver. Your insurance needs can change over time so periodically meet with your insurance broker for a review.
#3. Consider The Insurance Cost Of Your Next Car Purchase
The type of car you drive plays a big roll in what your monthly premiums may be. Car insurance premiums are based partially on the car’s price, the cost to have it repaired, the safety record and the likelihood of theft. Check with your agent or broker before buying any new or used car to see how it will affect your payments.
#4. Consider Higher Deductibles
The deductible is the amount you pay out of pocket before your insurance kicks in. The higher the deductible, the less risk the insurance company is taking and your premium is therefor lowered. With a higher deductible you carry more risk but you pay only in the event of an actual accident.
#5. Ask About Discounts
Each company has their own set of reward based discounts you might qualify for. You can get a discount for having good credit, a clean driving record, owning an anti-theft device, being a low mileage or seasonal driver, being a student with good grades, and the list goes on. Your qualification for discounts can change overtime so it’s good to review this each year to make sure you are paying the lowest premiums possible.