When it comes to lowering your auto premiums, you’re in the driver’s seat

Having adequate car insurance is both smart and prudent, but it doesn’t have to be expensive. The good news is that premiums can vary by hundreds of dollars depending on a number of factors. Review your coverage at renewal time to make sure your insurance is in step with your needs, and follow these practical steps to reduce the bottom line on your auto policy.
Shop around for your car insurance

1. Prices vary among companies, so it pays to compare and contrast them to find the best deal.

Compare prices and find the best deal on insurance by getting quotes from a variety of sources. Ask your friends and family for their recommendations based on their own experiences, and do your own research before committing to a company.

Auto insurance can be confusing, but arming yourself with knowledge will help you ask the right questions of your prospective insurer. Make sure to take the time to get to know your insurer and their policies – this will help you feel confident in your decision if the time comes to make a claim.

When looking for the best insurance rates, be sure to keep in mind that the lowest price isn’t always the cheapest option. Compare rates between reputable companies and make sure you’re comfortable with the service you get. Your state insurance department or online consumer information sites may provide information on consumer complaints by companies to help you choose the right insurance company for your needs.

2. Compare insurance costs before you buy a car

Auto insurance premiums can vary based on a car’s price, safety features, and the likelihood of theft. Some insurers offer discounts for cars that are known to be safe, have safety features that reduce the risk of car theft or personal injuries or are cheaper to insure. When you’re comparing new or used vehicles to purchase, research what each will cost to insure. You can start by checking safety rankings for specific models with the Insurance Institute for Highway Safety’s (IIHS) online Top Safety Pick rating tool.

3. Raise your deductible

You can significantly lower your car insurance premiums by choosing a higher deductible. However, be sure you have enough money set aside to cover the higher deductible in the event you have to make a claim.

Check your credit report before purchasing car insurance. This can help you save money on auto insurance by showing you have a good history of paying bills on time. It is also important to make sure there are no mistakes on your credit report, as this could cost you in the long run with higher premiums or even non-renewal.

The most affordable way to get the best coverage is to shop around online. You can find quotes from multiple companies easily online.

4. Reduce optional insurance on your older car

Generally speaking, if your older car is worth less than 10 times the insurance premium, collision and comprehensive coverage may not be cost-effective. To find out if this is true for you, check your car’s value. You can look up your car’s value for free on websites such as Kelley Blue Book, National Association of Auto Dealers (NADA), and TrueCar.

Collision and comprehensive coverage may not be cost-effective for older cars. Your auto insurance premiums are likely to be higher if you have a car loan. One of the reasons is that your insurer considers you as a higher risk if you have a car loan. Another reason is that lenders typically don’t let you purchase collision and comprehensive coverage unless you also have a loan (liability coverage is often included in loan contracts).

5. Bundle your insurance and/or stick with the same company

Some insurers offer discounts if you purchase multiple types of insurance from them, such as homeowners and auto insurance. Others offer discounts to longtime customers. Do your homework and compare costs to see if buying a multi-policy discount from a single insurer is cheaper than buying your insurance from different companies. You may have a better deal if you go with several different insurers instead of just one. If you do, you’ll want to check back every few years to make sure that you’re still getting the best rates available.

New York is known for having strict regulations for insurance companies and requiring them to provide coverage that benefits customers. This may mean you can’t buy cheaper insurance in another state and bring it back to New York.

6. Maintain a good credit history

Good credit history can provide many benefits, such as lower insurance premiums. Insurers often use credit scores to price car insurance policies. According to research, people who have good credit make fewer insurance claims. To make sure you’re getting the good credit you deserve, it’s a good idea to check your credit score regularly to ensure accuracy.

7. Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive less than the average number of miles per year. Low mileage discounts can also apply to drivers who choose to rideshare to work. Car insurance discounts for safe driving/

Not all auto insurance discounts are provided by insurers. Many communities offer a cash reward to drivers who have not had any moving violations or accidents for three years in a row. Safety-conscious motorists can receive a 10 percent discount for completing an accredited driver safety course.

8. Seek out other discounts

Did you know that your insurer may offer other discounts beyond those for having a safe driving record? For example, some companies offer discounts to those who have not had any accidents or moving violations during a specified period, or who have taken a defensive driving course. If there is a young driver on your policy who is a good student, has taken a driver’s education course, or is away at college without a car, you may also qualify for a lower rate.

To get the best deal on your car insurance, ask your insurer what discounts you might qualify for. Keep in mind that what’s important is the final cost of your policy. Even if a company offers few discounts, it may still be able to give you a lower overall premium price.

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Care insurance can be one of the most expensive items on your budget. It can also feel like you’re throwing money down the drain. Because, as a responsible driver, you may only use it occasionally. Especially when you choose the wrong company. Luckily for you, money-saving tips are easy to follow and help to make our care insurance coverage a little more affordable.

1. Provide Your VIN When Getting Quotes

Some cars are equipped with safety features that may reduce the likelihood of them being stolen or damaged. These features may not necessarily be standard on all models and may be found only in new cars. This means you can save some serious cash by having the features of a newer car on your older model.

Don’t forget to ask your insurance company if there are any discounts you can apply for. Older vehicles are less expensive to insure, which means you will save money on your car insurance premiums.

2. Go Paperless

Going paperless is good for the environment, your wallet, and your insurer. It helps the planet by saving a lot of trees that would have to be cut down and reduces toxic emissions. Rather than sending you a statement several times a month, your insurer can send it all at one time. This saves them money because there are no paper bills to print and mail out.

They forward that cost savings on to you, so it’s a win-win for everyone. Besides, would you rather get even more paper junk mail to sift through and clutter your countertop, or get a smartphone app notification or email instead? Get rid of those unwanted and unnecessary paper bills and save money in the long run with our fast, convenient, and environmentally-friendly direct mail alternative.

3. Drive Safely

The way you drive can affect your car insurance rates. If you are a risky or aggressive driver, consider taking defensive driving courses and safe driving courses. Make sure your insurance company knows about these courses!

You’re probably paying too much on your auto insurance. The risk you pose as a driver is reflected in your rates. If you speed, recklessly drive, and run into trouble, you’ll pay through the nose for it down the road. The bottom line is the safer you drive, the less you’ll pay.  Be a responsible driver and avoid tickets and other accidents that raise your insurance premiums.

4. Buy an Older Car

Some insurance companies base their premiums on the average cost to fix a car. Older cars tend to have lower repair costs, and so are less expensive to fix. If you price identical policies for cars of the same model, one being five years older than the other, the older car would likely be about 13 percent cheaper to insure.

Brand new cars are more expensive to insure for three reasons: They cost more to buy, they cost more to replace, and they depreciate faster than older cars. To save money on insurance and on your car too, you can shop for a used vehicle or a certified pre-owned (CPO) car.

5. College Graduate? Tell Your Insurer

Some auto insurance companies offer discounts to drivers who have completed college, so tell them about your education if you want to save money on your car insurance.

When valuing liability insurance, the risk is the driving factor. Insurers assume that people who graduate from college have a better understanding of driving safety than those who don’t. College graduates are generally safer drivers and so they should be considered lower-risk drivers for a liability policy.

6. Learn the Lingo of the Insurance Industry

Insurance is one of the great benefits of being a driver, but setting up coverage and obtaining the right insurance for your needs is an important step. If you buy the wrong policy, you may pay more in premiums or be forced to file a claim after an accident that was not covered. If you purchase a policy that does not fully cover all your needs, it may be difficult to make a claim.

When buying a new insurance policy, it’s important to be clear about what you’re getting in return. Understanding the smallest details and what your policy covers can be essential when filing a claim for a failed appliance or something that was shipped to you.

7. Pay Annually or Semi-Annually

If you pay for your premium upfront, you could save an average of $62. If you pay for your premium annually or semi-annually, there are also discounts for paying that lump sum. You’ll see your premium go up slightly when you click the button to sign up for a monthly installment plan.

These are called premium finance charges, or premium installment rates. Companies want to make sure you get their money in advance and don’t choose another policy. They also like to sell their products to consumers who expect not to get in trouble for being late on payments or canceling policies.

8. Buy 10 Days Early

If you need car insurance ten days before your car is due to be insured, you’ll likely wind up paying more. Yet most of us fail to take time to review our auto policy policies and renew them. While this will require that you pay a late fee, you may actually be saving money every year. Take some time to review the costs of your automobile insurance and decide if there are ways to save money.

9. Set Up Auto-pay

Some insurance companies offer discounts for auto-pay. They know their customers will make payments on time, and they don’t want to have to worry about the bill being paid late either. Because auto-pay reduces the likelihood of a payment being late, these insurance companies offer similar discounts for auto-pay.

Automatically paying an insurance premium is like forgetting to pay your rent or phone bill on time — there is a greater chance of it being late, so your insurance provider wants to reduce their risk.

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