Car insurance is a bill that everyone would like to see reduced, and fortunately there are a number of ways to accomplish that. A few simple changes — some of them that you can make with ease, others that might happen on their own — can save you a lot of money when obtaining coverage or insurance quotes. Being aware of what they are and how to make them happen keeps you ahead of the game when it comes to getting the best rate on your insurance coverage.
Here are five ways to lower car insurance rates
1) Changing your deductible
The deductible can make a big difference on car insurance premiums, but many people are afraid to carry a higher deductible because they don’t want to have to pay in case of an accident. The truth is that carrying a higher deductible may save you a lot of money over time — more than enough to make up for having to pay it should such an accident occur.
A safe driver can go for many years without having to pay a deductible — if they ever have to at all. That means that every year that a safe driver saves on their car insurance and doesn’t pay that higher deductible, it’s money in the bank. A change in deductible from $500 to $1000, for example, could save you hundreds each year. That means it has paid for itself after a few years without an at-fault accident.
2) A new car
Although going from a much older car to a newer one is likely to mean an increase in payments, sometimes buying a new car can save you a lot of money. If you go from a vehicle that tends to have higher insurance rates such as a luxury car, sports car, or large SUV, to a smaller or more economical vehicle that has a lower risk level for the insurance company, you could see those rates go down.
There are even some cars that come with discounts, such as those that are considered to be highly fuel —efficient or hybrids, or cars with the latest in anti-theft technology. It’s something to consider when you’re shopping for a new car.
3) Shopping around for a new company
Changing to a new insurance company could be the change that brings your rates down the most, but unless you take the time to shop around regularly, you will never know how much you could save. Changing insurance companies isn’t always the right move, since it may mean losing a longevity discount and paying a cancellation fee, but the savings could outweigh those costs.
Moving to a new car insurance company is probably the most common method by which drivers see major savings on their insurance premiums.
4) Tickets and accidents falling off your record
If you have been paying for an at-fault accident or a ticket on your premiums, the day that it comes off will be a good day for your insurance premiums. Remember that while the charge will come off your driving record on the day it was officially recorded against you, it won’t come off your insurance bill until renewal. That’s because your insurance company did not start charging you for the ticket until your policy renewed in most situations.
While most insurance companies are on top of this and will take that charge off right away on renewal, it’s good to be aware of when you should no longer be charged. If you don’t see a reduction on renewal, you should be sure to give your insurance company a call and find out what’s going on.
5) Moving to a new home
Moving is a major change in your life, and it can change your insurance rates for the better in more than one way. First of all, each postal code has its own risk level in terms of theft and accident statistics. That means that if you move to a neighbourhood where these statistics are lower, you will see a reduction in rates.
Additionally, if you move closer to where you work, the shorter commuting distance can mean another reduction in your rates. While you wouldn’t move just to reduce rates or choose your new home based on it, it’s good to be aware of how the move can affect premiums. Getting quotes for potential new homes from your insurance company will help you to understand how it can change your rates for the better.
Do your research & be aware
Getting lower insurance rates isn’t complicated — it just requires that you take a little time to review your policy and be aware of the changes that can give you a better rate. These are five of the most common changes that result in lower rates; some of these you can take advantage of immediately to see a lower premium on your next bill.