If you own a car, you need car insurance.
Unfortunately, car insurance rates can be pretty expensive, especially if you’re a young driver.
We can all afford to do what we can to lower our monthly expenses. Since car insurance can cost well over $100 per month in certain states, finding lower car insurance rates can help you save hundreds of dollars every year.
If you think you’re paying more than you have to for car insurance, try using some of these tips to help you lower your car insurance rates.
Compare Rates
First, and this applies to most things, you should compare rates to find the best deal possible.
It’s easy to simply search for something like “Cheapest car insurance” and choose the company at the top of the list. But you should never assume that one company has the cheapest rates.
The only way to be sure that you’re getting the best rates possible is to shop around and compare rates. Get quotes from multiple providers to find the best deal possible.
Drive Responsibly
If there’s a smaller chance that you’ll have to make a claim any time soon, insurance providers will be willing to give you lower rates.
This doesn’t just include whether or not you’ve been in any accidents. It also means avoiding speeding tickets, DUIs, reckless driving, and any other traffic violations.
Even if you’ve never been in an accident, multiple speeding tickets tells insurance providers that you are more likely to get into an accident.
Major providers like Nationwide offer safe driver discounts. Driving safely and responsibly could save you 10% or more on your car insurance rates.
Search for Deals
Safe driving discounts aren’t the only way to lower your rates. Providers offer all sorts of discounts that could save you hundreds on your car insurance.
Allstate, for example, offers discounts for people with new cars, students, and individuals with multiple policies.
You might also be offered discounts if you agree to pay for multiple months up front, own a car with certain safety features, insure several cars with one policy, and more.
Decide How Much Coverage You Need
If you can afford it, it’s often a better idea to get more than the minimum coverage required by your state.
In some cases, though, this might not make sense.
For example, if you own an older vehicle with a low market value, it might be smart to skip collision coverage. Payouts for collision coverage policies are often limited by the market value of your car. So, if your car has low value, it might not make financial sense to pay high rates for additional coverage.
Take Care of Your Credit
Like a home or auto loan, car insurance rates are often dependent on your credit score. Certain states don’t allow companies to consider credit when determining your insurance rate, but if your state does allow it, then you should be sure that you’re paying your bills on time.
If you had poor credit when you took out your current policy but it has improved since then, it might be time to shop around for a new plan.
Most people are paying more than they need to for car insurance. Following these tips can help you save hundreds of dollars per year on your car insurance policy.
