How to Get Cheaper Car Insurance Quotes

With high gas prices and the cost of vehicle maintenance going up, drivers are looking for ways to save money anywhere they can. One place where drivers can cut costs is to get cheaper car insurance rates. Car insurance is one of the most important aspects of vehicle ownership, and it's not something you want to skimp on, but there are some ways you can evaluate your needs and pay less for your premiums.

Difficulty: Moderately Easy

Instructions

1. Install security devices on your car. Even if you have an older, less expensive car, installing a car alarm can save you a few bucks on your premiums. Some newer cars even come with an alarm and other theft-deterrents already. If you've seen the blinking red light around your radio, that's one security device that could save you money, but locking lug nuts on your wheels is another.

2. Sign up for an annual policy. Most, if not all insurance companies charge a service fee each month for allowing customers the luxury of making monthly payments. Some insurance companies offer discounts if you pay for an entire year upfront. In addition, you can also lock in your rates if you pay annually instead of every six months or monthly.

3. Evaluate your mileage honestly and realistically. Most insurance policies base part of their prices on the number of miles you drive your vehicle each year. If you find that you are paying for 20,000 miles a year and you are only driving 10,000, consider reducing your coverage so you can enjoy lower premiums.

4. Ask for a multi-policy discount. Insurance companies offer customers a discount if they insure their home, boat or other cars through the same company. Even if you are only insuring two cars with the same company, bring this to your agent's attention so you can get a multi-policy discount.

5. Improve your credit score. A large number of insurance companies are considering a person's credit score before quoting a price for car insurance. That number of companies is growing, too. They assume that your credit score is an accurate indicator of driving and safety habits. Make sure there are no mistakes on your personal credit report and take measures to improve your current score, such as paying your bills on time and reducing your debt-to-income ratio.

6. Be a good driver. The best way to get cheaper car insurance rates and keep them low is to simply be a good driver. The fewer claims you make, the more attractive you will be to an insurance agent. Try to look out for other drivers and look for possible problems on the roadways so you can stay as safe (and insurable) as possible.

Tips & Warnings

• Evaluate your insurance needs each year. Your situation could change and your car depreciates each year, too. As a result, you may need less insurance than you did the previous year.
• Take a defensive driving course. This shows that you have more experience to avoid accidents and look out for other drivers. Many insurance companies offer discounts for those who have gone through these types of courses.
• Be honest with the information you provide to you insurance agent. If you make a claim, they will conduct a thorough investigation. If they find you were dishonest about something, they could refuse your claim and even cancel your insurance.

Resources

• More about lowering your car insurance
• Checklist of information you need to get a car insurance quote