7 Ways to Reduce Car Insurance Premiums

Car insurance is a legal requirement for every car owner. But the cost of car insurance differs from driver to driver and depends on several factors. So whether you want basic or complete auto insurance, you need the best deal possible.

This blog post provides tips on how to save money on car insurance.

1. Use Multi-Car Discounts

If you have multiple cars, insure them with one company to get multi-car discounts. The insurance company will usually be glad to lower your premiums because they can get more business from you. 

You can also arrange for other household drivers to get auto insurance from the same insurance company. That way, you can jointly negotiate for reduced rates.

2. Ask for Higher Deductibles

A deductible is the amount of money you have to pay before you receive any payment from the insurance policy. If your deductibles are higher, your premiums will be much lower.

For example, the cost of comprehensive coverage can reduce by up to 30% when you increase the deductible to $500, according to Forbes. Nevertheless, have a budget to pay for the deductible in case you get a claim.

3. Have a Good Credit Record

Insurers usually believe that individuals with good credit scores have fewer auto claims. To enhance your credit score, settle bills in time and avoid having too much debt. 

Also, if any errors occur on your credit record, request the relevant agencies to make the appropriate corrections and keep your records accurate.

4. Change Your Coverage

Frequently re-evaluate your insurance policy to know if you get the best deal. For example, when you buy a new vehicle, the car loan lender might ask you to get comprehensive auto insurance coverage. This policy may not be the best once you finish paying off the loan. Therefore, ask for quotes from other insurance companies.

5. Improve Your Driving Record

Speeding tickets, DUIs, and other road violations can harm your reputation with insurance companies. If you already have the offenses on your record, you can do little except wait for them to go away.

However, you can change your driving habits so you do not commit additional violations. When your driving record improves, request lower insurance premiums from the insurance company.

6. Explore Car Insurance Discounts

Insurers often offer several car insurance discounts that can significantly lower your insurance premiums. Explore some of the discounts you should consider:

• Vehicle safety discount. Safety features like airbags and antilock brakes can attract a discount.
• New car discount. If your vehicle is relatively new, you can get a discount of up to 15%.
• Good student discount. If you are a full-time student aged 16 to 25 and have an average score of at least a B, you can get up to a 25% discount.

Always reach out to your insurance provider to inquire about the latest discounts.

7. Drop Coverage You Do Not Need

Sometimes, you can pay for insurance that will not help you in any way. For example, you may have gotten a rental car reimbursement policy when you had one car, yet you have since bought an additional car. Similarly, if you get roadside assistance services from another company, you do not need that service as part of your insurance policy.

Therefore, carefully scrutinize your insurance policy to see if you need to make any changes and drop unnecessary coverage.

Ultimately, the best strategy is to get your car insurance from a reputable insurance company, such as Clover Insurance Agency. We provide auto and home insurance services at affordable rates. Contact us today to get a quote.