8 Tips for Lower Car Insurance Premiums

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Did you know the average cost for full auto insurance coverage in the U.S. is $2,348 annually, while the average for minimum coverage is $639 annually?

 

While there are instances when minimum coverage will do — like when insuring an old hoopty — most drivers will gain better peace of mind by getting comprehensive coverage. It’s a good idea for drivers who want a payout from their insurers to fix their vehicles after an accident.

 

If in an accident that causes injury, you may also need a personal injury lawyer to help you get the help you need to get back to good health. But the right insurance coverage will help take a load off your mind.

 

So, how can you get the best car insurance rate? Here are eight strategies if you want comprehensive coverage but want to lower the expense.

 

  1. Compare Quotes

 

One of the best ways to save on car insurance is to compare quotes from several insurance companies. Some motorists accept the first quote they’re given. But if you want to save money, get quotes from at least three insurers. You might be surprised to see the difference in rates. And that can get you a great deal on auto insurance.

 

  1. Bundle Policies

 

Do you already have home insurance with an insurance provider? Some insurers offer discounts to people who bundle services. So, if you add a car insurance policy, you might get a price cut since you already have home insurance with the same insurer. The savings can add up.

 

  1. Pay Higher Deductible

 

Another way to reduce your car insurance rate is to boost your deductible. Your premium will go down when you go this route. So, if you agree to increase the out-of-pocket expense before your insurer steps in after a filed claim, you’ll be rewarded with a lower price for auto coverage.

 

  1. Usage-Based Coverage

 

Some insurance companies offer usage-based car insurance coverage. It can save you a ton if you rarely use your vehicle.

 

One source notes Americans drive an average of 14,263 miles annually. But many motorists drive a mere fraction of that amount. If that describes you, ask your insurer about usage-based coverage or find one offering it. When you think about it, usage-based coverage makes sense since you pay based on how much you drive. Why should you have to pay the same amount as someone who drives a lot more than you?

 

  1. Install Anti-Theft Device

 

Another way to lower your vehicle insurance premium is to install an anti-theft device. Your insurer will likely give you a cost break if you install equipment that reduces the odds of theft.

 

  1. Use Winter Tires

 

You can get a better deal on car insurance if you install winter tires for the cold weather season. Winter tires will reduce braking distances on slick roads, offer better handling, and afford more grip. These benefits will help you be a better and safer winter driver. 

 

  1. Ask About Discounts

 

You might be surprised at the discounts available if you ask an insurance agent. Some discounts are there for the asking. You won’t get them unless you do. But they can add up and save you some serious money.

 

  1. Drive the Right Vehicle

 

As you already know, the type of vehicle you drive will affect how much insurance you pay. A brand-new luxury car or electric vehicle will cost more to insure than a traditional SUV or sedan. So, if you’re cost-conscious about insurance, be selective about what vehicle you buy. 

 

These are eight ways you can save on car insurance. Whether your policy is up for renewal or you’re seeking car insurance for the first time, take advantage of any opportunity to save some money.