Here’s What Can Lower Auto Insurance Rates, Reduce Premiums
Lower auto insurance rates. Deep premium discounts. What car owner doesn’t want that especially in today’s world where car ownership costs $700 per month?
Armed with proper knowledge and diligence in shopping for the best auto insurance rates, there are ways to lower your rate and save money for the road ahead.
Let’s Count Your Auto Insurance Discounts
Whether you are in Michigan with its sky-high car insurance rates or anywhere in the U.S., you certainly can do something about your monthly insurance premiums so you’d pay less every month.
Here are car insurance discounts you can take advantage of:
- Being a safe driver
- Installing anti-theft devices
- Taking advantage of loyalty discounts
- Piggybacking car insurance
- Setting a higher deductible
- Maintaining a low mileage.
As you get on in age, you can always use a refresher on driving. Enrolling in an accredited defensive driving course not only brushes up your skills as a driver, you also get to take home discounts for up to 10% for the next three years as the insurer offers.
It’s not just you that need to be on the safe side, your car must be equipped with safety features such as pretensioning seat belts, airbags, stability and traction control, and anti-lock brakes. While these can be expensive to buy, these devices lower your insurance risk and thus translate to a lower insurance rate.
Don’t stop there. Install anti-theft devices in your car especially if you park in areas known to have higher incidences of car theft. Depending on which state you are, you could lower your auto insurance rate with this move.
Car insurance companies can reward customer loyalty through discounts in car insurance coverage. One insurer, for example, offers up to 25% for multiple car insurance programs.
Relatedly, you can be eligible for a discounted premium when you piggyback your policies. This means bundling various insurance plans from the same company – homeowners, life, health and more. Another example of piggybacking is when a teen driver joins his/her parents’ auto policy to get a substantially-reduced insurance premium.
A deductible is what you pay before an insurer pays a claim. When you pay a higher deductible, it equates to a substantial reduction in insurance costs of 40% or higher. Make sure you can afford a higher deductible to get a lower monthly premium.
Some car insurers also offer low mileage discounts for drivers who keep their miles below the national average. And if you carpool for work, you could be eligible for similar discounts as well.
Unlocking More Auto Insurance Savings Secrets
With a lower car insurance premium in mind, it certainly pays to drive a low-risk vehicle because it’s less expensive to insure. A car with a high passenger and driver protection rating is considered less risky to insure.
Other options that can possibly help you earn discounts on premiums and thus save you money are as follows:
- Being a member of a professional group can land you a premium discount. Check with your insurer.
- By automating or going paperless in their processes, insurers save time and money. They can pass their savings onto their clients via lowered premiums.
- Driving a hybrid car can get you discounted premiums as drivers of hybrid cars tend to be more careful and responsible.
- Delaying the purchase of a new car in favor of keeping your older one for another four years is financially wiser than insuring a new car with its need for comprehensive and GAP insurance.
In the end, always be the defensive driver. This eliminates the need to file any claims and keep your driving history clean. A good driving track record is always a plus.