How Can I Lower My Exorbitant Car Insurance Rate?
Your car insurance premiums can be a significant expense, depending on your circumstances. Fortunately there are things you can do to lower your car insurance rates. Contact your insurance company and ask about any discounts you may qualify for. The insurance representative will ask you some questions and let you know about possible discounts. Your neighborhood, type of automobile and your driving record all play a part in determining your car insurance premiums.
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Instructions
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Call several insurance companies and compare their rates. You can save a significant amount of money by shopping around. Not all insurance companies charge the same amount.
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Combine your homeowner's insurance policy with your auto coverage. Many insurance companies provide a discount when you bundle policies in this manner. Ask about discounts for having multiple family members on your auto policy.
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Attend driving school. If you have a moving violation, such as speeding or running a red light, you can receive points on your driving record. Every time points are added, your insurance premiums can increase. Check with your insurance company to see if you can attend traffic school. When you have successfully completed the class, you can have usually have points removed from your license.
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Move to a low-crime area. A neighborhood with a high crime rate is more likely to have a car stolen. This situation represents a higher risk for the insurance company and your policy will be priced to account for the risk. Before you move, call your insurance company and provide them with the address you are considering and they will check the rate.
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Downgrade your automobile from a sports car or high-performance car to something more conservative. Insurance premiums for sports cars and luxury cars are often higher than for a standard sedan. Certain automobiles are targeted by thieves. Premiums for these cars will be higher.
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Increase your deductible. A deductible is an out-of-pocket expense you must first pay before the insurance company will pay the remainder of your claim. When you have higher deductibles, you are taking on more risk, so the insurance company can afford to lower your premiums.
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Ask your insurance company about discounts for having safety features on your car. If you have air bags and car alarms, you may be able to receive discounts from the insurance company. Automobiles with theft-deterrent features will also have lower insurance premiums.
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If you have teenagers, ask about discounts they may receive for having good grades or attending driving school. Maintaining a certain grade point average can help lower automobile insurance premiums. Some companies, such as AARP, also offer discounts to seniors who take driving classes.
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Consider dropping collision coverage if you have an older car and the cost to repair it after a significant crash is more than the value of the car. Insurance companies will only pay your car's current cash value, not the amount needed to replace it. Eliminating collision coverage can often cut your premium in half.
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Tips & Warnings
Look for ways to increase your credit score. Some insurance companies charge a higher insurance premium if you have bad credit. Pay your debts on time and pay down credit card balances.
Always drive carefully and obey traffic laws. Aggressive drivers have more accidents than careful drivers.
If you have an accident, and you have collision coverage, you must still pay your deductible. A deductible is the out-of-pocket expense you pay before the insurance company pays the remaining bill. A typical deductible is $250 or $500. This makes collision coverage even less attractive for older cars.
References
- Photo Credit the late-autumn automobile image by Ivan Hafizov from Fotolia.com
