How To Reduce Your Car Insurance Rates

So, you’ve bought a car, and everything seems great.

It gets you from A to B, has excellent gas mileage, and is the perfect color for your personality!

And then suddenly you get hit with crazy high car insurance rates. All the sudden you find yourself wondering how on earth you’ll be able to afford everything.

After all, car insurance rates can be astronomically high if you don’t pick the right one.

Today, I’m sharing with you how to reduce your car insurance rates.

With a little bit of thought and planning, you can reduce your car insurance rates to save you more money.

And, when you learn how to get better car insurance rates, you can put that money towards your savings or debt.

Plus, when you save on car insurance, you can put that money towards paying off your car or maintaining it.

I hope that these tips and tricks will help you lower your payments so that you’re able to put that money away for a better or future use.

So let’s get busy and start saving or learning how to reduce car insurance rates!

Request A Higher Deductible

A deductible is a sum of money you are required to pay for before your benefits kick in. The most common deductibles are $500 and $1,000. That means you’d have to pay $500 before your insurance will pay for any damages to yours (or someone else’s) car.

If you request a higher deductible, you can reduce car insurance rate costs significantly (like potentially by $50 a month!).

If you go this route, you do want to consider the fact that you’ll need enough money set aside in case you end up having a claim.

If you’re in a bind and need to raise money for your deductible, here’s How To Earn $1,000 This Month.

Having a higher deductible is one way on how to get better car insurance rates.

Buy Your Car Insurance From Your Homeowner Insurance Provider

This tip is pretty straightforward. Companies will reward customers who use their services for more than just one thing.

If you have homeowners insurance, you should call your provider and ask about what discounts you can receive when you bundle car and home policies together to reduce car insurance rates.

However, you still want to be smart and shop around to make sure you’re getting the best car insurance rates. It is possible to find a better deal somewhere else, although it is unlikely.

Also, if you have two cars registered with the same insurance provider, make sure to double check that you’re receiving even more of a reduction in price to save on car insurance.

Keep A Great Credit Score

Did you know that most insurance companies use your credit information to price their auto policies for car insurance rates?

According to research, those who keep tabs on their credit score often have fewer claims.

If you establish a good credit history, this can reduce car insurance rate costs significantly.

While it may seem daunting to keep your credit stellar, all you have to do is pay your bills on time, don’t obtain more credit than you need, and keep your balances as low as possible.

Make sure to check your credit score monthly, and get any mistakes fixed on your record right away.

Credit Karma is the perfect place to keep tabs on your credit history and score. The website is free and doesn’t hurt your credit at all when you check things out.

If you want to Raise Your Credit Score, here’s how you can do that to reduce car insurance rates.

Reduce Your Coverage On Older Cars

If you have an older car, try dropping the collision or comprehensive coverage to reduce car insurance rates.

Research shows that if your car is worth less than ten times than the premium, purchasing that coverage may not be the right choice financially.

If you’re not sure what your car is worth, you can easily check Kelley Blue Book or Edmunds.

I hadn’t reviewed our car insurance premiums in a couple years and when I went through the policy with someone from USAA they noticed that we were paying more each year in insurance than one of our cars was worth! Our car is only worth $900, yet we were paying $100 a month to insure it!

Now, let me clarify that you will still need to carry the insurance to pay for the damage on someone else’s car, should any accident be your fault (or someone else on your policy).

But you can save on car insurance by reducing your coverage.

Ask About Low Mileage Discounts

This would be the perfect option for anyone who carpools to work, works from home, or homeschools since you don’t drive AS much each day. It’s a great way to reduce car insurance rates.

If you’re someone who drives lower than the average number of miles per year (12,000), then you’ll want to ask about low mileage discounts.

Don’t be shy! Take advantage of this opportunity!

Pay For Yearly Car Insurance

This one might be a little harder to do, but if you are able, paying your car insurance up front in one lump sum could save you up to 15% and reduce car insurance rates.

Some insurances will also allow you to pay 6 months at a discount also, so that would help the one-time payment be less.

My insurance company, USAA, does not charge any difference between paying monthly and paying 3 or 6-months at a time. So call your provider and find out how your company works.

Group Insurance Discounts

One fantastic way to save on car insurance rates is to speak with your employer about group insurance discounts.

Some companies offer lower costs to those who get insured through a group policy at work.

You can even get a discount through alumni groups from your college!

Ask the groups or clubs that you’re a part of to see if there is anything like this as a possible option for you too.

Car insurance rates don’t have to cost you an arm or a leg.

With a little bit of thought and planning, you can reduce your car insurance rates to save you more money.

And, when you learn how to get better car insurance rates, you can put that money towards your savings or debt.

Plus, when you save on car insurance, you can put that money towards paying off your car or maintaining it!

With some simple knowledge of how these providers work, you can end up saving yourself a lot more money than you previously thought possible!

I hope these tips help you get a lower insurance rate on your car and inspire you to help others save as well!

YOUR TURN: How do you reduce your car insurance rates? Let me know in the comments below!

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