Shop for Options

Insurance rates vary widely from company to company. Explore multiple options before choosing coverage from one provider. Get multiple quotes, and you’ll save a lot of money.

Compare Insurance Costs Before Buying a Car

Car insurance, among other things, is based on the car’s price, its repair costs, safety features, and the likelihood of theft. So ensure that you can afford its insurance before you buy it.

Higher Deductibles

If you keep your deductibles high, you’ll pay lower premiums. But ensure that you can pay the deductible amount in case of a claim. You may want to regularly put some money aside in a fund to make up for your deductibles.

Reduce Coverage

If your car is old, then you could consider dropping comprehensive and collision coverage on it. Drop those covers, especially if the vehicle is not worth more than ten times the premium amount.

Bundle the Insurance

If you buy homeowners’ insurance and auto insurance from the same insurance company, then you may get discounts on both. But it still makes sense to explore options and ensure that the individual insurances aren’t cheaper.

Keep a Good Credit Record

Several insurance companies check your credit record and base your insurance rate on it. So it is a good practice to maintain a good credit record and make all your payments on time.

Use the Low Mileage Discounts

If you are likely to drive fewer miles than the average miles most people drive in a year, check if you are eligible for a low mileage discount. This discount may also apply if you carpool to work.

Check Group Insurance

You may get a reduction in price if you get insurance through a group plan from your employer, or through professional, business, and alumni groups or other associations.

Ask for Discounts

You could get a discount on your rate if you have not had any accidents or moving violations for years. Discounts are also offered if you pass a defensive driving course,  for students with good grades, students away at college, anti-theft devices, driver-ed courses, long-time customers and more. The important thing to consider is not the discount itself, but the final price.