Auto insurance premiums are on the rise, and they’re only likely to increase more. Given how expensive it is to obtain and then insure your vehicle, it only makes sense to try to get your car insurance cost down as much as possible. Here are 7 tips to lowering your auto insurance premiums.
#1: Compare Prices
Some insurance companies offer loyalty discounts for sticking with them over a number of years, but even those might not offset the price increase you might be seeing each year. Shop around at least every few years and get quotes from multiple companies by calling their agents or using tools that give auto insurance quotes online.
Of course, you should never pick your insurance simply because of the cost alone. Ask friends and family for recommendations or how their experience has been with their insurance company to be sure you pick one that’s right for you.
#2: Increase Your Deductibles
In case of an accident, a deductible is the cost you pay out of pocket before your insurance company steps in. Depending on where you live, there are different laws regarding the minimum coverage that is legally required. While you might end up paying more out of pocket in the event of an accident, increasing your deductibles will save you money on your monthly auto insurance premiums.
#3: Raise Your Credit Score
Many insurance companies use your credit score as a means to measure not only your ability to pay your premiums, but also to tell if you’re more likely to make a claim. People with higher credit scores often see a decrease in the price of their auto insurance, simply because there is a direct correlation between higher credit scores and a lower risk of accidents.
#4: Bundle Your Insurance
Did you know that most insurance companies offer more than just one type of policy? While having auto insurance is required to operate a motor vehicle, it’s also a good idea to insure other important assets as well. Some other types of insurance you might be interested in include:
- Homeowners Insurance / Renter’s Insurance
- Other vehicles, including boats, motorcycles, and RVs
- Health / Dental / Vision Insurance
- Pet Insurance
- Travel Insurance
- Life Insurance
When choosing more than one insurance policy from the same company, you’ll likely receive discounts on both. While it’s certainly possible to use multiple insurance policies to insure different assets, consolidating them can save you money.
#5: Ask About Discounts
There are a multitude of discounts insurance companies might offer. By asking for, or enrolling in, these discount options, you could see a decrease in your premiums. Some discounts to ask about include:
- Good Grades for Student Drivers
- Military
- Antitheft Devices
- Safe Driver
- Low Annual Mileage
- Driver Feedback Programs & Apps
These are just a few examples of discounts that could save you money. Always be sure to check with your insurance provider for any discounts you may be eligible for.
#6: Consider Your Car’s Make & Model
When purchasing a new or used car, it’s important to research its average insurance costs. Auto insurance premiums are calculated in part based on how expensive the vehicle is, what its repair costs might be, how likely it is to be stolen, and its overall safety rating. Sports cars, for instance, are generally more expensive to insure as they have higher theft rates and their drivers are statistically more likely to be involved in an auto collision.
#7: Be a Safe Driver
While a history of accidents and traffic citations might increase your insurance rate, you can also lower it by practicing safe driving. These marks on your record typically fall off after a matter of a few years. You can also lower your auto insurance premiums by taking safe driver courses, such as a defensive driving class.
Affordable Auto Insurance By Castle
As the leading independent insurance agency in California, Insurance by Castle has an affordable auto insurance policy for you. Whether you’re a new driver or looking to save money on your old insurance premiums, we can help! We pride ourselves in providing affordable policy prices while also giving exceptional customer service to every person we work with.
Call (650) 364-3664 today or request a quote. We’ll work with you to create a custom policy that gives you the vehicle coverage you need at a price that’s affordable for you.
