5 Ways to Lower Your Auto Insurance Rate

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5 Ways to Lower Your Auto Insurance Rate

The price you pay for auto insurance is impacted by the type of vehicle you drive, where you live and how much coverage you need. If you’re looking to save some money in this department, you’ll be happy to know that there is plenty you can do to lower your auto insurance rates. You may not be able to do them all overnight, but consider the following points in the future so that you can align yourself with the best rates.

1. Bundle Your Policies

Many insurance companies will offer discounts when clients buy at least two policies with them, such as home and auto coverage. These discounts are worth bundling for; some insurance providers offer a 25 percent discount. Plus, it keeps things more organized on your end.

2. Request Higher Deductibles

A deductible is the amount of money that you will have to pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your insurance rates considerably. Just by raising your deductible from $200 to $500, for instance, you could reduce collision and comprehensive coverage by as much as 30 percent.

3. Compare Insurance before Buying a Car

If you’re in the market for a new car, check into the insurance costs. It’s easy to walk off with the best looking car on the lot, but this could cost you in the long run. Consider the make and model of the vehicle, the cost to repair it, its overall safety record and the risk of theft.

4. Don’t Pay for More Coverage than You Need

Most states require basic liability coverage, but you don’t necessarily have to carry collision and comprehensive coverage if your car is older than 10 years. Obviously, it’s best to have more coverage for a newer car, but if you have an older vehicle, consider reducing the coverage, which could save you up to 20 percent.

5. Ask for Discounts

Always ask for discounts to ensure that you are getting the maximum deductions. There are discounts for drivers who are 55 years or older, as well as discounts for “good students.” There are also defensive driver courses that can be taken online that may lower your premium.

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