6 tips to reduce car insurance costs | Forbes Lawyer

There are many ways to lower auto insurance premiums, including shopping around and keeping your car safe. Photo: AdobeStock.

Auto insurance premiums can vary depending on several factors. Insurance companies typically consider the driver’s age, driving history, location, credit rating, and vehicle type when determining monthly premiums.

Although such factors contribute to how much you have to pay for auto insurance, you may also be paying for unnecessary coverage. For example, if you recently bought a new car, some finance companies will require you to have comprehensive coverage.

Fortunately, there are ways to lower car insurance costs. Even if car insurance is mandatory in many regions, it doesn’t mean you have to pay a fortune for it.

Here are the tips you need to know to lower your auto insurance costs.

1. Compare prices

As mentioned, auto insurance prices can vary widely, so it’s worth shopping around. If possible, compare several auto insurance quotes by calling your preferred insurance companies or get information online.

Because you buy auto insurance coverage to give yourself peace of mind and protect yourself financially, it’s important to avoid buying on price alone. Therefore, selecting a financially stable company is vital. Check online rating websites or ask about the financial health of the insurer.

2. Select your car well

Insurance companies focus on your type of car when calculating your monthly premiums. Most of the time, expensive cars like electric vehicles are more expensive to insure than conventional models because the more impressive the car models, the more they will stand out, attracting vandals and thieves.

Expensive cars also cost more to repair, thus requiring expensive insurance. So check out how much it may cost to insure a specific model before you buy a car.

3. Keep your car safe

Insurers will provide you with an affordable premium once you do everything you can to keep your vehicle out of harm’s way. Therefore, keep your car in a secure driveway or garage to prevent vandalism or theft.

You can also lower car insurance costs by installing or upgrading safety features in your car. For example, you can install a tracker or a quality car cover.

Maintaining a clean driving record and a healthy credit score can significantly lower the car insurance premiums you’ll pay. Photo: AdobeStock.

4. Maintain a good credit score

Another way to lower car insurance costs is to maintain a good credit score. Many insurance companies use credit information to price auto insurance policies because people with good credit tend to have fewer claims.

To improve your credit score, never take more credit than you need, pay your bills, and try to reduce your credit balances. Reviewing your credit record regularly can also be helpful in correcting potential errors quickly and keeping your record accurate.

5. Look for discounts

Most auto insurance companies offer discounts for maintaining a good driving record and insuring multiple vehicles. Also, several providers offer further discounts if you have a vehicle with security features and anti-theft devices.

Other insurance providers may also offer discounts if you drive low mileage per year. If you’re not sure what discounts to consider, contact an auto insurance agent to lower your coverage costs.

6. Be a responsible driver

Being a responsible driver is a great way to keep your car insurance premiums bass. You can do this by avoiding accidents and traffic violations.

Generally, moving violations stay on your report for three years. You may want to watch out for these issues to get better rates for your monthly premiums.

You don’t always have to file a claim if something happens. For example, your car can get bumps and scratches due to someone else’s negligence. In this case, filing a lawsuit to repair said damages is not worth the necessary excess. So the best solution is to pay for the repairs or let the negligent party bear the costs.

Taking accredited or approved defensive driving courses can also help you earn points from your insurance provider.

However, ask your insurer about this before signing up for one because not all companies can offer you better deals for taking driving lessons. This way, you will know whether or not spending on defensive driving courses will be worth your time, money, and effort.

Car insurance doesn’t have to be expensive. Plus, it’s possible to lower your auto insurance costs with the tips discussed in this article.

Remember to maintain a good credit score, take care of your vehicle regularly, and shop around for the best options available. Being a responsible driver can also make a difference in lowering your auto insurance costs.

Leave a comment

Stay up to date

Register now to get updates on promotions and coupons

Shopping cart