Finding the right coverage for your vehicle is important, but it’s also important that you can afford your car insurance premiums. With these tips, you may be able to save money on your car insurance policy.
1. Set a Right Deductible
If you raise your deductible, you’ll be able to save on car insurance, but you’ll have to pay more money out of your pocket if you make a claim. If you raise your deductible to $200 to $500, you may be able to save 15 to 30 percent on your premiums. If you raise your deductible to $1,000, you may save 40 percent. If you have a fairly clean driving record with no recent history of an at-fault accident, it might be wise to save money by purchasing a high-deductible policy. However, before doing so, make sure you can afford to pay that deductible if you do cause an accident.
Many people can save money on their car insurance policies by using discounts. You should ask your car insurance provider if they provide discounts to new drivers’ who have taken driving courses, older drivers’ who have taken refresher courses and drivers’ who have taken a defensive driving course. Drivers’ who have anti-theft and safety equipment on their vehicles may be eligible for a discount with some insurers’. Students’ who have good grades are usually able to receive a discount. Drivers’ who are employed by a specific company may be eligible for car insurance discounts as well as college alumni.
3. Multiple Policies
People who have multiple insurance policies with one insurance company may be able to save between $72 to $110 annually on their car insurance.
Adding a teenager to your car insurance policy can raise your premiums by 50 to 100 percent. It’s important that new drivers’ take driving courses before they get a license and drive your vehicle.
5. Remember to Report Reduced Mileage
Insurers’ usually consider how many miles a person drives every year to determine their premiums. On average, people drive 12,000 miles annually. If you aren’t driving as many miles annually as previously said you are, you need to inform your insurance company. You could save five to 10 percent.
6. Maintain a Good Credit Score
Most states allow insurers’ to use your credit score when determining how much to charge you for premiums. It’s important that you frequently check your credit report for errors. If you don’t have a good credit score, you should ask your insurance company for an exception.
7. Pay in Full
People who pay their premiums in full instead of making installment plans can save, on average, $62 annually.
There are many other ways to save money on car insurance policies. Some other ways include buying an older vehicle and providing your vehicle identification number when getting quotes. Car insurance premiums are calculated based on state-approved rating factors.