How to Get Cheaper Car Insurance – Finding affordable car insurance can sometimes feel like searching for the best deals on a sale day. You know what you need, but comparing prices from multiple companies can quickly become overwhelming. Since each insurance company uses its own formula to set prices, it’s not always easy to tell when you’ve found the best deal.
Car insurance rates have been rising steadily, and many drivers are now exploring options for cheaper coverage. If you’re hoping to cut costs, here are five smart ways to reduce your car insurance bill.
1. Work With an Independent Agent
The easiest way to compare prices is to get quotes from several insurance companies, but doing this on your own takes time. A good alternative is to work with an independent agent. They can gather quotes from different insurers, including smaller companies that may not advertise heavily but still offer competitive rates.
An agent can also help you find discounts and select the right coverage based on your needs. To find an agent, you can ask people you trust for recommendations, search online, or visit a national network of independent insurance professionals.
2. Ask About Discounts
Never assume you’re already getting every discount you qualify for. Talk to your agent or insurance company and ask about available savings. While not all discounts will apply to your situation, some common ones include:
- Combining home and auto insurance under the same company
- Keeping a clean driving record or completing a defensive driving course
- Signing up for paperless statements or automatic payments
- Driving a car equipped with anti-theft features or certain safety technologies
3. Raise Your Deductible
Your deductible is the amount you agree to pay out of pocket before your insurance kicks in. Increasing it can help lower your monthly premium.
If you decide to raise your deductible, make sure you have the money set aside in case of an accident. For example, if your claim is approved for $10,000 and your deductible is $1,000, the insurance payout will be $9,000.
4. Reconsider Full Coverage
If your vehicle is older and not worth much, you may want to think about dropping comprehensive and collision coverage. These are often included in what’s called full coverage, but they only pay up to the current value of your car, minus the deductible.
If you can afford to repair or replace your older car on your own, removing these options might save you money. Keep in mind, though, that if you’re leasing or still paying off your car, your lender will probably require full coverage.
5. Improve Your Credit Score
In most states, insurance companies are allowed to consider your credit-based insurance score when calculating your rate. Unfortunately, a low score can raise your premium significantly.
Working on your credit could lead to big savings. To improve your score, try to pay your bills on time and keep your credit card balances low ideally under 30% of your total limit.
By taking a closer look at your coverage, asking the right questions, and making smart adjustments, you can find more affordable car insurance that still meets your needs.
