How To Lower Your Car Insurance

Does your monthly car insurance bill give you a headache and cause you to contemplate the mass transit route? We can relate. Instead of dreading that auto premium, try these ways to lower your car insurance and invest the savings.  

Improve Your Credit Score

Auto insurance companies use your credit score when factoring your car insurance premium. Their logic is that a better credit score will result in your making timely payments and safer, more responsible driving. If your credit score is in the 690-850 range, that should be high enough for you to get preferred rates. If your credit score is 689 or lower range, try boosting your score for a lower rate. 

You can try improving your credit score by doing the following:

  • Pay all of your bills on or before the due date
  • Don’t close any credit cards 
  • Address any collection accounts
  • Apply for a Credit Builder Loan

Once you raise your credit score, shop around for car insurance, and see if you can beat your current premium.

Bundle Your Policies

If you have homeowners insurance or another type of policy, see if you can add your car insurance to that existing policy. Insurance companies usually offer anywhere from a 5%-10% savings for bundling your products. You can bundle your car with another vehicle, your home, or even a rental property if you have one. Check with your agent on all the ways you can bundle policies to save.

Ask About Discounts

There are a variety of car insurance discounts available and you might qualify for some. Check to see if your company offers any discounts and contact your agent about applying them. Some common car insurance discounts are:

  • Good student: students who maintain a specific GPA are eligible for this discount.
  • Claims free: requires no claims filed. 
  • Military: military personnel past and present qualify for this discount. 
  • Senior: 65+ years and older.
  • Loyalty: clients who maintain coverage with the company for a certain time frame and continue coverage.
  • Pay in Full: pay your auto insurance premium for the year at once and get a discount.
  • E-pay: sign up for monthly automatic payments to unlock this discount.
  • Bundling: insure another vehicle or your home to qualify for a bundling discount
  • More: discounts vary from company to company, see what ones your provider offers.

Install An Anti-Theft Device

Speaking of discounts, a lot of insurance companies will give you a lower premium for having an anti-theft device in or on your car. This is because it will make it harder for your vehicle to be stolen and as a result will lower your risk as a driver. Lower risk = lower premium.

Some examples of anti-theft devices you can install:

  • Alarms
  • Tire locks
  • Wheel locks
  • GPS tracking system

Check Insurance Before You Buy

If you’re in the market for a new vehicle or trading in your old one, get an insurance quote before you buy it. The make and model are weighted highly when it comes to what you pay for insurance. Get quotes from multiple companies on the exact vehicle you are looking at. This will help you determine if you can afford the monthly bills (car payment, insurance, parking, fuel) associated with the vehicle before making the purchase. 

Get Pay-As-You-Go Insurance

This tactic has the potential to save on car insurance if you don’t have a long daily commute and use your vehicle sparingly. This type of insurance creates a custom rate based on your mileage. Your insurance company will keep track of your miles through a GPS or installed device on your vehicle. This also means that your car insurance premium will likely change month to month so be sure to plan accordingly! You can do this by averaging up a few months’ payments and determine how much you’re usually spending. 

Save On Your Premiums

You can’t avoid car insurance but you can try to control the costs. Keep these methods in mind the next time you get insurance quotes and make sure your agent is thorough with your policy by adding all of your eligible discounts.

If you can, take the bus or ride your bike and get a low mileage car insurance policy. Invest in your vehicle by adding anti-theft devices to lower your risk of having to file a claim. Work on your credit score and always look for discounts.