Car insurance is a basic necessity for anyone who owns a vehicle, and it will certainly benefit you if you get involved in an accident. If you are only looking to spend the minimum amount of money on a policy, you can accomplish this goal by studying the different auto insurance rates. This will help you get a good idea on how to save money on car insurance by receiving coverage at an affordable cost. Every single insurance company offers special ways to save money. To make sure that you are getting the discounts that you qualify for, ask your agent to go over your savings.
Safe Driving Helps
Any traffic tickets or accidents on your driving record will cause your insurance premiums to increase. You may have the opportunity to attend traffic school to get your ticket dismissed. If you can reduce the violation points on your driving record, you will save a lot of money.
Drive An Easy To Insure Car
Check the car insurance rates for the car model that you are thinking about purchasing. The type of car that you drive impacts your car insurance premium. Safe and regulatory priced cars are easier to insure than expensive cars.
Get Rid Of Unnecessary Car Insurance
Consider getting rid of collision and comprehensive insurance. Collision insurance helps repair damage to your car if it is involved in an accident. Comprehensive insurance covers your car if it is damaged by a natural disaster or stolen. Research shows that comprehensive and collision insurance do not pay out more than the worth of the car. Take time to think about whether it is worth it to pay for coverage that may only reimburse you a small amount of money. You may be better off setting aside the money spent on those insurance policies and using it on money to fund a car repair or a down payment on a new car.
Raise The Deductible
You can save money on collision and comprehensive insurance by increasing the deductible, which is the amount the insurance company is not responsible for.
Usage Based Insurance
If you are not a frequent driver, look for an insurer that can offer you coverage through a usage based driving program. The rates are based on how much and how well you drive. Install a device in your car that transmits data to the insurance company. You qualify for a discount by having low mileage on your car and also through establishing a record of safe driving. MetroMile and Esurance are among the companies that have usage based driving programs.
Manage Your Credit
Your credit score is an important factor when car insurance companies calculate the amount of money to charge you for insurance. In some cases, it could be a bigger factor than your driving record. To improve your credit so that you can receive better car insurance rates, make sure that all of your credit card payments are up to date. Make sure that your balances stay below your credit limits. Do not apply for too many credit cards, as that may negatively impact your score.
Look Around
Car insurance rates vary by a significant amount every year among different companies. Do your due diligence to get multiple quotes from a number companies to make sure that you are getting the best possible deal. Here are some discounts offered by the major car insurance companies. Keep in mind that just because an insurer may offer a lot of discounts, that does not mean that they are offering the lowest price.
Allstate
Allstate offers more than 10 different accounts based primarily on your vehicle type, lifestyle, driving, and coverage options. Allstate does use DriveWise, a usage based insurance program that benefits safe drivers.
Progressive
Some of the different ways that a driver can earn a discount through Progressive include owning your home, going online to start your quote and signing documents online when purchasing coverage. Progressive uses Snapshot as their usage based program, and while drivers can earn a discount, they may pay a higher rate if they are not considered safe drivers.
Geico
Geico offers drivers discounts based on their driving history, habits, and vehicle equipment. Drivers can also earn discounts through showing customer loyalty while also being a member of an affinity group. Military members, retirees, and federal government employees are also eligible for discounts.
State Farm
State Farm offers discounts for students, and their Drive Safe & Save usage based program gives drivers a discount simply for signing up. Drivers who don’t drive regularly can receive substantial savings on their insurance payments.
