Nationwide, the average cost of auto insurance is $1630 per year. It’s no surprise that auto insurance rates have been creeping up over the last few years. You might be wondering what ways you can get it lowered.
Losing your no-claims discount is one of the easiest ways to increase premiums. Or, maybe you haven’t got around to having that repair that’s bringing you up in quotes.
Not sure how to get lower auto insurance premiums? Let’s explore some ways to get a better rate on your auto insurance.
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Shop Around and Compare Rates
Auto insurance is a requirement to drive, but that doesn’t mean it has to be expensive. Premiums can vary widely from company to company, so it’s important to shop around to get the best rate.
Don’t just accept the first car insurance quote you get. Compare auto insurance rates from different companies and see who can give you the best deal.
Consider Raising Your Deductible
By increasing your deductibles, you’re essentially increasing the amount of money you’re willing to pay out-of-pocket in case of an accident. This means that your insurance company will have to spend less, so your premium will be lower. Of course, this is only a good idea if you’re confident that you can afford to pay a higher deductible in the event of an accident.
Take Advantage of Discounts
Almost every car insurance company offers discounts to encourage people to buy their products. The discounts vary but can be as much as 20% of the premium. To take advantage of these discounts, you need to know what they are and how to get them.
The most common discount is the multi-policy discount, given to people with more than one policy with the same company. Other discounts include the good driver discount, the student discount, and the safe discount. You can get these discounts by simply asking your insurance agent.
Review Your Coverage
Regularly reviewing your auto insurance coverage is a great way to keep your premiums low. By identifying any unnecessary coverage, you can instantly reduce the cost of your insurance.
Make sure you are only paying for the coverage you need. There’s no need to pay for extra coverage you’ll never use.
Bundle Your Policies
Bundling is a great way to save on auto insurance. When you bundle your auto policy with other policies, such as your homeowners or renters insurance, you can save on your premium. This is because insurance companies offer discounts for customers who have more than one policy with them.
Consider Driving a Less-Expensive Car
A lower-priced vehicle will typically have a lower car insurance rate than a luxury or sports car. In addition, a less expensive car is less likely to be involved in an accident and less likely to be stolen. Insurance companies consider the make and model of your car when calculating your premium, so driving a less expensive car can save you money on your premium.
Effective Options to Lower Auto Insurance
There are many ways to lower auto insurance premiums. You can shop around for, compare rates, and ask for discounts. You can also choose a higher deductible, pay in full, or take advantage of other discounts. Whatever you do, ensure you get the coverage you need at a price you can afford.
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