How to Lower Your Car Insurance Premium

Car insurance is a mandatory expense. However, it doesn’t have to break the bank. There are steps you can take to keep your insurance expense to a minimum.

Here are a few tips to lower your car insurance premium.

Compare and Save

The car insurance industry isn’t a monopoly. There are numerous insurance producers, including the company endorsed by Peyton Manning, the one with the lady named Flo who makes you laugh, the company known for the famous cavemen, and many others.

Shop around, compare premiums, and save money. The only way you’ll find the cheapest car insurance is to explore your options.

Buy Direct

Keep in mind that you can buy insurance through an agent or you can buy directly from the company. You might be able to save money when you buy directly from the company because there won’t be a commission involved.

Compare Premiums Before You Buy a Car

When it comes time to buy a car, first check to see what the insurance premiums would be if you already owned that vehicle. That way, if the insurance is very expensive, you can look for another car with a lower premium.

Get a Higher Deductible

If you don’t drive your car a whole lot or you’re confident in your abilities as a defensive driver, you can reduce your premium by raising your deductible. Of course, that’s a two-edged sword. If you do get into an accident, you’ll be paying out of pocket for the costs associated with that accident until you meet your deductible. In other words, a high deductible could actually cost you more money if you get into an accident. However, if you manage to maintain a solid driving record, a higher deductible can save you a lot of money in the long run.

Limit Coverage on Older Cars

If you’ve got a clunker that’s been around for a decade or more, you probably don’t need collision and/or comprehensive coverage on that vehicle. You might be happy that the car still gets you around, but the fact of the matter is that it’s probably not worth all that much. Consider only getting liability coverage on that vehicle.

Keep in mind, though, if you’re still making car payments on a car, then you’re probably required to maintain comprehensive insurance. In that case, you’re not allowed to reduce your coverage to liability insurance only.

Bundle and Save

If you’re satisfied with your home or auto insurance, you might be able to save money by getting both types of insurance from the same company. Contact customer service for both companies and get a quote about what you’ll pay if you bundle the insurance. You might find that you can save a significant amount of money.

Maintain a Great Credit Record

Believe it or not, a great credit record can reduce your insurance premiums. Make sure that you pay your bills on time and manage your debts responsibly.

Whether you’re looking for liability insurance, comprehensive insurance, or even car rental insurance, you want to get the best deal that you can. Fortunately, you can take steps to lower your car insurance premium.