How to Save on Car Insurance
Going with your state’s minimum level of car insurance coverage is one simple way to pay less. But there are several more ways you can save money and still get the coverage you need. From increasing your deductibles to looking for discounts, here are some of the best ways to save on car insurance.
Choose Higher Deductibles
Higher deductibles mean cheaper insurance payments. The reason for this is that you are taking on more “risk,” so the insurance company compensates by lowering your rates. But be careful: You can only go as low as your state minimum requirements. Plus, having a higher deductible means you’ll have to pay more out-of-pocket expenses if you’re in an accident. Think carefully about what deductible you’d be comfortable paying after an accident, but this is one easy way to save on your monthly payments.
Bump Up Your Credit Score
It may surprise you to learn that your credit score can affect your car insurance rates. Lower credit scores (about 680 and below) have been shown to cost people more on their rates. So, if you’re looking to lower your payments, doing what you can to increase your credit score might pay off. There are many ways to increase your credit score, but the most common methods include paying your bills on time, paying off high amounts of debt, and keeping your credit card balances as low as possible.
Ask for Discounts
Many customers are eligible for at least one type of car insurance discount. Some of these discounts are based on the type of driver you are, what organizations you are affiliated with, or what insurance options you choose. Ask us which discounts you can get. Here are just a few common discounts:
- Multi-car Discount – If you insurance more than one car on the same policy, you may be eligible for a discount.
- Good Driver Discount – If you have a clean record or have taken a defensive driving course, you might get this type of discount.
- Safe Vehicle Discount – Does your car have safety equipment like automatic seat belts, an anti-theft system, or anti-lock brakes? This might mean you get a discount.
- Pay Ahead Discount – Some customers get a discount if they can pay their insurance premiums in one six-month or year lump sum.
- Automatic Withdrawal Discount – Have your insurance payments automatically taken from your checking account and you might get a discount.
- Affiliation Discount – Sometimes, just being part of a particular organization can get you a discount. Examples of these “Affinity” discounts include teachers, firefighters, nurses, and more.
- Good Student Discount – Are you in high school or college? Show proof of your good grades and you might get this discount.
- Senior Driver Discount – Drivers older than 55 might be eligible for a discount. Sometimes mature drivers just need to take a defensive driving course to qualify.
- Low-usage Discount – If you driver your car fewer than 10,000 miles per year, have a very short commute to work, or keep your car parked much of the time, you might get a discount for being a low-usage driver.
- Homeowner Discount – You might be eligible for a discount just for owning your own house, condo, or mobile home.
Combine Your Insurance Policies
If you combine other types of insurance—home, renters, motorcycle—with your auto insurance, you can usually save money in the long run. You may be able to bundle your insurance policies together by moving them all to the same company. Another advantage to bundling is that you only have one payment to make for all your insurance policies. Ask one of our agents to help you with bundling.
Now that you know how to save even more money on your insurance, make sure you get the cheapest and easiest insurance around. Even if you have a poor driving record or have lapsed coverage, call us today for a free quote!