Best Ways to Save Money on Car Insurance

Shop Around for the Best Rates

It’s easy to assume that your current auto insurance company is giving you the best rate available, but chances are you’re wrong. Shopping around for car insurance is the best way to save money and get the coverage you need. You can easily compare rates from multiple providers online, so you don’t have to visit each office or make a phone call. Comparing rates takes mere minutes and could save you hundreds of dollars each year.

Increase Your Deductible

One of the best ways to save on car insurance is to increase your deductible. This is the amount of money you’ll have to pay out of pocket when filing a claim before your insurance kicks in. The higher your deductible, the lower your monthly premiums will be. This can be a great way to save money on car insurance, but it’s important to make sure you’re comfortable with the amount of your deductible. If you’re not sure you’d be able to pay the amount of your deductible in the event of an accident, it’s best to stick with a lower deductible.

Take Advantage of Discounts

Insurance companies offer a variety of discounts to help lower your rates. Some of the most common discounts include multi-vehicle, multi-policy, safe driver, good student, and defensive driving discounts. You may also qualify for discounts if your vehicle has certain safety or anti-theft features. Ask your insurance provider about any discounts you may be eligible for and make sure you’re taking advantage of all available savings.

Choose Your Vehicle Carefully

The type of car you drive plays a major role in your auto insurance rates. Cars with higher safety ratings and lower theft rates are typically cheaper to insure. In addition, luxury cars and sports cars usually cost more to insure than more practical vehicles. If you’re shopping for a new car, take car insurance rates into consideration when making your decision.

Maintain a Good Credit Score

Your credit score plays a role in your car insurance rates. Insurance companies use credit scores to determine how likely you are to file a claim. If your score is low, you’ll likely pay higher rates. To save money on car insurance, make sure you’re doing everything you can to maintain a good credit score.

Look for Low-Mileage Discounts

If you don’t drive very often, you may be able to get a low-mileage discount. Some insurance companies will offer discounts if you can prove that you drive fewer than a certain number of miles each year. This is a great way to save money on car insurance if you don’t drive very often.