How to Lower the Cost of Your Car Insurance

How_to_lower_car_insurance_costs

Shopping for the best car insurance? Naturally, along with finding the policy that offers the best coverage, you’re also looking for one that offers the lowest rates.

That said, it’s worth knowing that a lot of factors play into how much you end up paying for coverage, and there are actually proactive steps that you can take to ensure your insurance premiums are as low as possible. Carmudi shows you 10 tips on how to lower the cost of your car insurance.

## 1. Shop around

Insurance rates vary drastically with each insurance provider, so it pays to obtain more than one rate quote before you commit. In fact, get as many car insurance quotes as you can. You may stumble upon a number that’s half of what one provider is quoting if you shop around thoroughly.

Visiting the physical locations of every different provider on your list can be costly and time consuming. Fortunately, there are car insurance comparison sites like www.ecomparemo.com that allow you to comparison-shop car insurance quotes online. An online car insurance calculator can also help. Use these tools to your advantage as much as you can.

## 2. Choose a higher deductible

A deductible is the amount you agree to pay out of your own pocket before your policy benefits are applied to a claim. A higher deductible means paying lower monthly auto insurance premiums.

However, the tradeoff is that you’ll be paying more from your own pocket should you figure in an accident, and the more severe the accident is, the larger your expenditure will be. You can keep the risk of a higher car insurance deductible minimal by having enough money set aside to pay for a claim.

## 3. Drive safely

The way vehicle insurance works is that the longer you drive without incidence, the lower your premium will be. If you are a safe driver, you are entitled to discounts such as a no-claims bonus. With some insurers, one year’s worth of no claims could amount to a 30-percent discount on your premium.

Additionally, if you can go four to five years without major citations or accidents, your discount could add up to as much as 50 percent! And if you choose a higher deductible, you could be looking at a monthly premium that will definitely have little effect on your monthly finances.

## 4. Take a defensive driving course

Some major insurance carriers provide a discount for those who have completed a defensive driving course from an accredited driving school.

When asking for a quote, make sure to ask about this type of discount before you enroll for a class. This way, you guarantee that the amount you spend for the course translates into regular savings every time you renew your policy.

## 5. Inquire about low mileage discounts

Many auto insurance companies offer discounts to existing policyholders whose yearly mileage falls way below average. If you use your car sporadically, or if your trips are frequently short, then you might want to check how much mileage you consume in a year.

If it’s below the annual average mileage of all cars, which is 16,894 kilometers, you could score a cheap auto insurance rate with some companies, so be sure to ask about it.

## 6. Inquire about any other discount

You could qualify for any existing car insurance discount without knowing it, and insurance providers aren’t required to divulge such information. As such, don’t be coy about asking whatever discount you may be eligible for.

Some providers offer discounts to students, citizens, and vehicles that come equipped with certain safety features, such as car alarms, GPS tracking, and anti-theft devices. Always ask for them when you’re shopping.

## 7. Avoid coverage lapses or gaps

A gap or lapse in insurance coverage refers to any period where you failed to obtain insurance for your car. Reasons for such lapses can range from not paying your premium on time, the cancellation of your policy, or your insurer going out of business. Regardless of why it happened, a lapse in coverage can be used by car insurance companies to increase your premium.

To prevent this from happening, make sure to pay your monthly premium on time, and if you’re switching to another insurance provider, don’t let go of your current one until the new coverage becomes active.

## 8. Do away with collision and/or comprehensive coverage

If you own an older model car, you may want to opt out of comp and collision coverage. So how you do you know if it’s worth nixing both types of coverage altogether? Add both premiums up, then multiply the amount by 10. If your car’s current market value is worth less than then, then it’s acceptable for you to drop both.

That said, dropping certain types of coverage opens you up to certain risks. After all, you never know when an accident will occur. It can help to speak to financial advisor to know if you are making the right decision for your circumstances.

## 9. Raise your credit rating

It comes as a huge surprise to a lot of people that credit rating actually plays a part in the monthly premium they end up paying, but it’s true. The reasoning behind this is that many providers believe that people in good financial standing tend to be more careful in other aspects of their life, including the way they drive.

According to financial consultants, you could end up paying as much as 50 percent more if you have a bad credit rating, so keep it good by paying your bills on time.

## 10. Choose a safer and more secure vehicle

If you’re buying a new car along with your policy, you must choose a car with plenty of built-in safety features such as anti-lock brakes, seatbelts, and airbags.

Likewise, look for a vehicle that has plenty of security features. Such vehicles are statistically less likely to be in an accident or get stolen, that’s why insurers are more willing to provide lower premiums for them.

It can also help to have a garage for your car. Statistics show that vehicles stored in garages are less likely to get stolen than those that are merely parked on the street or driveway.

### The bottom line

The cost of car insurance will likely rise with every passing year. Hopefully, the tips above can help you reduce your car insurance payments so you can get the affordable car insurance that you deserve.

Read All

Featured Articles

Recommended Articles For You

Read All

Featured Cars

  • Upcoming

Car Articles From Zigwheels

  • News
  • Article Feature
  • Advisory Stories
  • Road Test
  • GWM PH prolongs warranty coverage
    GWM PH prolongs warranty coverage
    Ruben Manahan IV . Mar 01, 2024
  • Rolls-Royce Arcadia Droptail unveiled
    Rolls-Royce Arcadia Droptail unveiled
    Paulo Papa . Mar 01, 2024
  • 137 participants join 2024 Eneos Super Sprint series
    137 participants join 2024 Eneos Super Sprint series
    Ruben Manahan IV . Mar 01, 2024
  • Japan’s MLIT lifts shipment suspension of Toyota diesel engines affected by irregularities
    Japan’s MLIT lifts shipment suspension of Toyota diesel engines affected by irregularities
    Ruben Manahan IV . Mar 01, 2024
  • GAC M6 Pro to be unveiled this month
    GAC M6 Pro to be unveiled this month
    Ruben Manahan IV . Mar 01, 2024
  • Luxury mover matchup: GAC M8 vs. Toyota Alphard
    Luxury mover matchup: GAC M8 vs. Toyota Alphard
    Paulo Papa . Feb 27, 2024
  • Sophisticated shades: GAC M8 colors
    Sophisticated shades: GAC M8 colors
    Paulo Papa . Feb 19, 2024
  • Spotting the differences: GAC M8 GL Master vs. GX Master
    Spotting the differences: GAC M8 GL Master vs. GX Master
    Paulo Papa . Feb 16, 2024
  • Geely GX3 Pro: suited to rev up resolutions for 2024
    Geely GX3 Pro: suited to rev up resolutions for 2024
    Ruben Manahan IV . Feb 12, 2024
  • Crossover comparo: Kia Seltos vs. Toyota Yaris Cross
    Crossover comparo: Kia Seltos vs. Toyota Yaris Cross
    Hazel Nicole Carreon . Jan 31, 2024
  • Here are some New Year’s resolutions for car owners
    Here are some New Year’s resolutions for car owners
    Paulo Papa . Jan 03, 2024
  • PH auto market: 2023 in retrospect
    PH auto market: 2023 in retrospect
    Paulo Papa . Dec 15, 2023
  • Here’s a holiday gift guide for car enthusiasts
    Here’s a holiday gift guide for car enthusiasts
    Hazel Nicole Carreon . Dec 15, 2023
  • Oil players cut pump prices anew
    Oil players cut pump prices anew
    Paulo Papa . Nov 14, 2023
  • PH oil price hike to continue this week
    PH oil price hike to continue this week
    Ruben Manahan IV . Sep 11, 2023
  • Adventure-ready: Subaru Crosstrek
    Adventure-ready: Subaru Crosstrek
    Paulo Papa . Mar 01, 2024
  • More doors, more fun: Suzuki Jimny 5-door
    More doors, more fun: Suzuki Jimny 5-door
    Paulo Papa . Feb 27, 2024
  • Refined ride: Volkswagen Tharu SEL
    Refined ride: Volkswagen Tharu SEL
    Paulo Papa . Feb 27, 2024
  • More than modest: Honda Brio V CVT
    More than modest: Honda Brio V CVT
    Paulo Papa . Feb 21, 2024
  • Little things matter: Kia Seltos 1.4T SX
    Little things matter: Kia Seltos 1.4T SX
    Ruben Manahan IV . Feb 20, 2024