Lowering Car Insurance Costs

If you're looking at your car insurance bill and wondering how you can save money on your insurance costs, here are eight ideas to help you.

1. Shop around

Getting multiple quotes on auto insurance is always a good idea. When you compare auto insurance rates, just make sure you're comparing the same coverage. Often, you'll be quoted a lower rate on insurance for coverage that doesn't match your existing policy.

2. Ask about discounts

It's always worth asking your insurance company about available discounts. You could get a lower car insurance rate by driving fewer miles, using your car less, having covered parking, having an alarm system, having a college degree, taking a defensive driving class, and lots of other things. Different insurance companies offer different discounts, so shop around.

3. Bundle your insurance

Many insurance companies will offer you discounts for bundling your insurance policies with them. This could include auto insurance, homeowner's insurance, renter's insurance, and life insurance. So be sure to take a look at what policies you have and get quotes when you shop around for auto insurance.

4. Be a good driver

It may sound simple, but this is really one of the best ways to lower your car insurance costs. If you're a good driver with few or no claims, you're going to have a lower monthly insurance bill.

5. Increase your deductible

Having a higher deductible means more money out of pocket when you need work done on your car. But it also means a lower insurance premium.

6. Improve your credit score

Some insurance companies utilize your credit score when determining your rate. If you have poor credit, then you might pay more for your auto insurance. In cases like that, improving your credit score could help lower how much you pay for car insurance.

7. Pay in full

Paying your car insurance premium in installments is convenient, but there is a cost associated with doing so. Check your statements, and if there's a fee for paying in installments, then pay your car insurance bill in full and you'll save yourself some money.

8. Get a new quote

There are some important times to get a new quote on your auto insurance to see if you can save some money. These include when you

  • graduate from college
  • get married
  • buy a home
  • improve your credit score
  • install a car alarm
  • move
  • Get older (over 25 years old is the big marker)

Keeping your insurance costs down is an ongoing process. You should shop every year to see if you can improve on what you're currently paying.

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