Keep Car Insurance Costs Under Control

Car insurance can be expensive but with a little effort, you can probably bring the price down.

How To Keep Auto Insurance Rates Down

From cheap insurance cars to cheap car insurance, there are ways to reduce your premiums. Here are some things you can do.

  • Know The Costs – Check insurance costs before buying a car. Premiums are based on things like the car’s price, repair costs, safety record, and theft risk. You can find vehicle information at the Insurance Institute for Highway Safety
  • Buy Smaller – Insuring large, top-of-the-line vehicles can be more expensive than insuring small, safe, lower-cost cars. 
  • Shopping Policies – Low prices are great but not the only thing to consider. Here are some tips for getting the right policy:
    • Get at least three quotes. 
    • Pick a financially stable company. Rating companies such as AM Best and Standard & Poor’s or consumer websites can tell you the financial health of different companies. 
    • Get quotes from different types of companies (agents, brokers, online, etc.).
    • Know and understand what the policy covers.
    • Ask friends and relatives for recommendations. 
    • Research consumer complaints against companies. 
    • Pick an agent or company that takes the time to answer your questions.
    • Get quotes every one-two years or if your premium goes up significantly. 
  • Drive Safely – Points are typically assessed to a driver for moving violations, and more points can lead to higher insurance premiums. Therefore, avoiding accidents and moving violations helps keep your rates low.
  • Increase Deductibles – Higher deductibles can lower your premium. If you choose a higher deductible, put aside enough money to pay it if you have a claim. 
  • Reduce coverage – Go over your insurance policy and ask about removing anything you don’t need, especially if you have an older or lower-valued vehicle.
  • Multiple Lines – Many insurers will give you a break if you buy two or more types of insurance, such as home or life in addition to auto. 
  • Multiple Cars And/Or Drivers – Companies will sometimes give you a deal if it brings in more business. If you have more than one vehicle or more than one driver in your household, ask to see if you qualify.
  • Good Students – Teen drivers typically cost more to insure. However, if your child has good grades you may be able to get a discount on the coverage. These discounts can range from 1% to 39% and generally last until the child turns 25.
  • Loyalty – Some insurers reduce rates for long-time customers. 
  • Good Credit – Most insurers use credit information to price policies and good history can cut your costs. Research shows that effective credit management and having fewer claims are related. 
  • Drive Less – Some companies offer discounts for driving less. Ask what your company’s mileage thresholds are.
  • Group Insurance – Ask your employer and any groups or clubs you’re are a member of (professional, business, alumni, etc.) if you can get insurance through them, it may save you money. 
  • Defensive Driving – Taking a defensive driving, accident prevention, or other approved course may qualify you for a discount or reduce the number of points on your license. Ask your insurer about the discount before signing up for a class. 
  • Where You Live – If you’re planning a move, find out the potential change in your car insurance rate so you can factor it into your budget.
  • Anti-Theft Devices – You may be able to lower your premium by installing anti-theft devices such as car alarms. Ask your insurer which devices can lower premiums and by how much. 
  • Usage-Based Insurance – You may be eligible for a black box program if you’re a safe, low-mileage driver. The insurer tracks your driving with a device installed in your car and based on how much, when, and how well you drive, provides discounts. 
  • Other Discounts – Ask if they offer any other special discounts, such as:
    • Hybrid or alternative fuel vehicle
    • Military personnel
    • Employees of certain companies
    • Paying the annual or six-month premium all at once
    • Receiving e-bills and documentation
    • Memberships in certain organizations or groups 
    • College students away from home
    • Drivers ed courses

Cheap auto insurance might seem like a myth but you can bring down the price. If you want to try to minimize your auto insurance costs, we’d love to help.