No matter if you are seeking immediate or long-term auto insurance savings, there are ways to help bring down rates and coverage costs. Take an advanced driver improvement course; improve your credit score; or decrease coverage levels as these strategies could all work towards lower auto insurance premiums.
Alternative strategies to reduce car insurance costs include increasing your deductible or bundling policies together.
1. Get a Free Quote
Car insurance is an essential expense, but there are ways to cut costs. One easy way is obtaining free quotes from multiple insurers.
Reduce your rates by cancelling coverage you no longer require, such as rental reimbursement or roadside assistance. Other strategies for saving include taking public transit or carpooling to work, earning professional discounts or becoming loyal customer with one company. You could even qualify for discounts just by being loyal.
2. Shop Around
Car insurance can make up a sizable part of your budget, making it essential to shop around. At each renewal or by using comparison tools available online, it’s wise to review rates or use comparison tools offered on various websites in order to save money by cancelling coverage that no longer fits with your financial situation. Doing this may result in savings.
Factors such as your vehicle’s safety features, mileage and deductible can have a considerable effect on rates. Other changes that could have an effect include buying a home, adding or subtracting drivers or bundling your policy.
3. Drive Safely
While driving is one of the most frequent activities people engage in, it also represents one of the highest risks. From speeding and distracted driving incidents to other causes, accidents are one of the primary causes of deaths in America.
Distracted driving includes any activity that draws your attention away from driving safely – such as eating, playing with the radio or reaching for objects inside your car. By eliminating such distractions you will help to ensure both yourself and other drivers remain safe on the road.
Adhere to the 3-second rule when following other vehicles to ensure you have enough time and space for stopping if needed. Consider investing in usage-based insurance programs like Allstate Drivewise, Progressive Snapshot or Nationwide SmartMiles as a way of saving even more money through safe driving practices.
4. Get a Telematics Device
There are various insurers that provide car insurance based on your driving habits using telematics devices. These plug into either your onboard diagnostic port or smartphone app and monitor how you drive.
These devices can record information such as your speed and whether or not you brake hard, as well as helping track its location.
Black box systems – whether self-installed or professionally fitted – can save money on insurance policies for drivers with safe driving habits or low mileage driving patterns.
5. Change Your Deductibles
Changes to your deductible can often help lower premiums; altering it could save money.
Raising your collision deductible from $200 to $500 could reduce your optional coverage premium by approximately 13%; however, make sure that you have sufficient savings available to cover such a higher deductible in case of an incident.
6. Add a Good Student Discount
Many insurers offer good student discounts that can lower the costs of car insurance for young drivers. To qualify, students must submit either their high school or college transcript demonstrating good grades. Some companies accept standardized test scores as proof.
Other discounts that students may qualify for include bundling discounts, safety equipment discounts and young driver training programs. Furthermore, distant students without regular access to vehicles could qualify for the distant student discount.
7. Ask About Discounts
There are a number of discounts that could significantly lower your car insurance premiums, including safe driver or claims-free discounts which require some time before eligibility can be met.
Other discounts may be obtained by taking a safety course, installing an anti-theft device and choosing paperless communications. Insurers also often offer discounts to those who pay their six or annual policy in full upfront; this saves them money on processing monthly payments and billing costs.
8. Take a Driver Improvement Course
Attending a driver improvement course can help you erase points from your driving record and qualify for a 10% reduction on insurance premiums, typically lasting three years.
The AARP Smart Driver course can be taken both in traditional classroom settings and online at your own pace. This program refreshes drivers’ knowledge of road rules while teaching new safety strategies.
Completing this program does not erase, modify or nullify any violations or convictions from your driving record; however, it may reduce the number of points allocated by DMV under its point system.
9. Make Sure Your Car is Insured
There are a few steps anyone can take to save on auto insurance, starting with shopping around and comparing quotes. Other strategies include opting for smaller cars that cost less to insure and increasing your deductible – provided you can afford any potential out-of-pocket costs should an accident occur.
Consider taking a driver improvement course or bundling policies; also review coverage and deductibles at least annually.