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5 Tips to Pay Less for Car Insurance

5 Tips to Pay Less for Car Insurance

As the cost of gasoline continues to increase consumers are continually looking for ways to save money with respect to automobiles. Examining and adjusting your auto insurance coverage annually can save hundreds of dollars per year with little to no effort. Below are some the best steps you can take to pay less for car insurance.

1. Raise Your Deductible

Filing claims against your auto insurance will almost inevitably lead to increased insurance premiums. Many people will file claims for minor repairs which should be paid for out of pocket. Raising your deductible from $250, which is the average, to $1,000 can result in significant savings with lower insurance premiums over the course of many years. As any car owner knows, you can go years without having to file a claim with your insurance so why pay increased premiums if you never benefit from the lower deductible.

2. Comparison Shop

Shopping around for the best prices doesn't just apply to boxes of cereal and tennis shoes. The auto insurance industry is highly competitive and switching insurers can sometimes result in savings of between 15% and 30% in premium payments. Many national online only auto insurance companies have substantially lower rates due to decreased overhead and lower employee expenses. At a minimum, contact three national auto insurance companies to get quotes.

3. Improve Your Credit

Having a poor credit history effects more than just your ability to obtain lines of credit or a personal loan. A credit report is often used when hiring employees or renting apartments to determine the level of risk and the likelihood of future issues. Auto insurance companies routinely use a consumers credit report to evaluate the chance of potential claims being filed resulting from reckless driving or speeding. There is a strong correlation between an individual who uses good judgment when it comes to finances and good judgment when operating a vehicle.

4. Ask For Discounts

In order to stay competitive many auto insurers will offer incentives and discounts to keep existing customers or to lure potential customers from competitors. Almost everyone has heard of a good student discount when purchasing auto insurance for teenage drivers but there are many other discounts available. Be sure to speak with your auto insurance agent or call their one 800 number since any potential discounts can lead to you paying less for car insurance.

5. Drive Cars With Lower Rates

Not all automobiles are created equally or viewed similarly in the eyes of auto insurance companies. While it may seem unjust, perfectly responsible long-term customers will pay more to insure a cherry red sports car than they would a blue station wagon. Even though both sets of drivers may be equally responsible by not receiving speeding tickets or other moving violations, statistics show sports cars are more likely to be involved in accidents resulting in claims. If you want to pay less for car insurance drive an automobile that is considered safe and inexpensive to insure.

Image by: Jason Bolonski