No matter what state you live in, if you drive you are required to have car insurance. While this factor is the same across all fifty states one thing that isn’t is car insurance rates. There are many different factors that are related to how much or how little you will pay monthly and we’ve compiled a few tips on how to get the best rates possible.
Clean Driving Records Matter
It’s important you realize that just like your credit history matters so does your driving history. A clean driving record with no tickets and accidents shows a car insurance company you are less of a risk to insure, therefore you can get lower rates. However, if you are someone who has had many accidents and tickets for you are going to pay the highest premiums possible. So be aware.
Watch Your Credit Score
As we mentioned, your credit score can play a part in your premium rate. Many companies see a good credit rating as a picture of how responsible you are so be sure your score is above average.
It’s important you obtain quotes from different insurance companies so you can make sure you are getting the best rate. You want to make sure the quotes obtained are for identical coverage as well as deductibles. Remember, your rates will change depending on the amount of coverage and perks you select.
Check for Discounts
Most insurance companies offer discounts if you enroll in paperless statements as well as electronic payments. Also, check for other perks such as paying off your policy in full upfront.
Get Rid of Unnecessary Coverage
Always check every aspect of your policy and make sure you are only utilizing coverage that you need. Anything extra you should drop as it can lower your rate significantly.
Always try to plan your driving routes to cover as little miles as possible as the more you drive, the higher your rates will be. If you notice you are driving more every year you can expect that your policy will be higher the next time you renew.
Drive an Older Car
One thing you should be aware of is that older cars cost less to insure than newer vehicles. While we all are drawn to the newest and shiniest models, it can end up being quite the expense. Sometimes used and reliable is better, especially if you are looking to save on insurance.
Choose A Higher Deductible
A deductible is the amount of money you have to pay out of pocket before your insurance carrier will kick in and pay the rest. The lower the deductible, the higher your monthly payment will be. So if you want to save a significant amount of money, selecting a higher deductible will definitely lower your payment.
If you combine your auto, home and life insurance with a single company you can save a huge amount due to a multi-policy discount. Check with your provider to see if they offer such benefits.
Move to a Different Area
Depending on where you live, you can sometimes get cheaper insurance. It’s worth looking into to see which parts of your city qualify for cheaper rates as you can save quite a bit of money this way.