Different Ways to Lower Car Insurance Rates

Car insurance premiums are on the rise and, given the high prices of new automobiles and the number of new drivers on the road, it is of little wonder why.

Millions of Americans know they are paying too much for their car insurance but do not know how to get a discount on their standard rate.

Read through these tips for decreasing car insurance rates and then enter your ZIP in above to start comparing car insurance rates today!

Shopping Around for Cheap Car Insurance

The first tip is simple: learn to shop around.

Accepting your insurance company’s default premium is the worst thing you can do if you really want to start paying less for your insurance!

The car insurance company somewhat takes your business for granted.

They have already categorized you and hope that you will continue paying the same premium as long as you can afford it.

What if you tell the insurance company that you are not willing or able to make the same premium payment? Or what if you tell the insurance company that you are willing to sign with a new insurance provider if it means reducing your monthly bill?

One of two things will happen:

1. The insurance provider will try to figure out a way for you to save money to keep your business.
2. You will actually go out and search for other insurance providers who meet your criteria for a new policy.

Remember that these insurance providers competitively price their premiums and change their rates on a regular basis. It is best to get at least three different comparison prices before you make your choice.

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What Cars are Worth Covering?

The insurance company will usually only provide a discount if you can also provide them some kind of benefit.

For example, some insurance providers are willing to provide a discount for hybrids cars or cars that are built with special safety features.

Some cars are well known throughout the industry for having fewer claims or for having less expensive repairs, and so they will be discounted.

It’s best to research your choice of manufacturer and make before buying or leasing a vehicle, because some vehicles carry higher premiums as a rule.

The sooner you learn what coverages are worth paying for and what coverages are not, the sooner you will be able to reduce the cost of insurance overpayment.

For example, some cars are far too old to justify high collision or comprehensive damage costs.

The combined premium you pay every year may even exceed the price of car’s market value.

If you are able to cover the cost of repairs yourself, you can eliminate all coverages except liability (as required by most states) and only pay a small percentage of full coverage cost.

Should I raise my car insurance deductible in order to save money on my car insurance?

Raising your insurance deductible is an excellent way to lower your car insurance premiums.

Your deductible is the amount of money that you will pay out of pocket when you are the cause of an accident. In a no-fault state, this is the amount you will pay any time you are in a car accident.

Many car insurance companies only have two deductible options $250 and $500. However, there are several that offer you many different tiers from $0 to $2500-some will even allow you to choose a higher deductible.

While the benefit to a higher deductible is lower premiums, you do need to be cautious about choosing a deductible that is too high. It defeats the purpose of maintaining a high deductible if you can’t afford to pay the deductible after you have a car accident.

Accepting Personal Responsibility for Your Vehicle

Accepting more personal responsibility for your car or truck can help you reduce your insurance premium.

For example, reducing your overall mileage and using your vehicle for only personal traveling and errands can help lower your car payment.

Driving carefully and avoiding all accidents or traffic tickets for a period of at least three years can drastically lower your premium rate, as can taking a defensive driving course.

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Qualifying for Car Insurance Discounts

Fixing your credit problems and paying off your debt is a shrewd move since many insurance companies will consider an insured’s credit report and score before determining a rate.

Other discounts that might be available in special circumstances include a student discount, a discount for air bags, anti-lock brakes, and car alarms, and a multiple vehicle discount.

A multi-policy discount offers a reduction of premium rate by charging less for different insurance contracts, such as automotive homeowners and umbrella insurance.

In some cases, motorists who move to a safer neighborhood, or perhaps a more rural district, save money because of skyrocketing insurance rates for busy urbanites.

Every insured person would like to receive a loyalty discount overtime, but this isn’t always a likely scenario to look forward to.

Remember that insurance rates are cyclical and can be affected by a variety of industries including automotive, real estate, insurance and mortgage markets.

The only way to know for sure is if you compare different insurance rates and then choose the company and contract most appropriate for your driving habits and style.

Compare Car Insurance Rates Online

Why not use our free comparison tool right now and compare several car insurance company products all at the same time?

Enter your ZIP code below to start comparing car insurance rates online now!

Case Studies: Different Ways to Lower Car Insurance Rates

Case Study 1: The Savvy Shopper

Amy was determined to find the best car insurance rates. Instead of accepting her current insurance company’s premium, she decided to shop around and compare quotes from multiple providers. After obtaining quotes from different companies using an online tool, Amy discovered that she could save significantly by switching to a different insurance company.

Case Study 2: The Safety Features Advantage

John was in the market for a new car and wanted to make sure he could get the best possible car insurance rates. He researched vehicles known for their safety features and decided to purchase a car equipped with anti-lock brakes, airbags, and electronic stability control.

When he approached insurance providers for quotes, he found that many of them offered discounts for vehicles with these safety features. By choosing a car with enhanced safety measures, John not only increased his peace of mind but also enjoyed lower car insurance rates.

Case Study 3: The Responsible Driver

Emily had a clean driving record and wanted to leverage that to lower her car insurance rates. She decided to take a defensive driving course to demonstrate her commitment to safe driving. Many insurance companies offer discounts to drivers who have successfully completed such courses.

After completing the course, Emily reached out to her insurance provider and provided them with the certificate of completion. As a result, she qualified for a discount on her car insurance premium, rewarding her responsible driving behavior.

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