While we might be tempted to opt-out of car insurance to save money, we know that foregoing coverage leaves us vulnerable to financial loss in the future. Instead of driving without insurance, which is illegal in most states, look for affordable insurance that accommodates your needs and budget. Read these tips on how to keep your car insurance premiums low without sacrificing any coverage.
Compare Quotes to Find the Best Rate
Since insurers weigh factors like age, credit score, and driving record differently, companies can charge different rates for the same coverage. This is why experts recommend getting a minimum of three car insurance quotes before choosing an insurer. You can contact the company via one of their agents, or you can visit their website to get a commitment-free quote in a few minutes.
Choose a Car That’s Inexpensive to Insure
Car insurance premiums are based in part on the car’s price, cost of repairs, safety ratings, and rates of theft. For example, a car with a lot of luxury parts will cost more to insure than an affordable car with high safety ratings. If you’re in the market for a new or used car, doing a little research beforehand can help you identify which models are the cheapest to insure.
Look for Discounts
Most insurance companies offer various discounts based on policy, driving record, vehicle features, and even good-student or defensive driver discounts. Look through every discount your insurer offers to see which ones you qualify for.
Raise Your Deductible
Your deductible is the amount you pay after making a claim before your insurance policy kicks in. The higher the deductible, the lower the monthly premiums. However, it’s important to be realistic about what you can afford to pay out of pocket if you make a claim, as there aren’t many scenarios where you can waive your deductible.
Maintain a Good Credit Score
Some insurers take your credit score in to account when calculating your premium, and a good credit score can sometimes yield a lower monthly rate. Research shows that drivers with good credit scores are less likely to file a claim than their counterparts. Paying your bills on time, keeping your credit balances low, and avoiding unnecessary credit all help balance your score.
Reduce Your Mileage
Driving fewer miles annually than the average car owner could qualify you for a low-mileage discount. You can reduce your mileage by carpooling, biking, taking public transit to work, or by working from home. Additionally, some insurers offer usage-based insurance, which sets your insurance rate based on monitored driving habits.
Bundle Your Policies
You might be able to get a discount by purchasing your auto and homeowner’s insurance through the same carrier. Bundling your insurance policy with your spouse’s or insuring multiple cars with the same company can also yield savings.
Why Do You Need Car Insurance?
The main reason we need car insurance is to protect ourselves from financial loss. Forty-eight out of fifty states require drivers to carry a minimum amount of liability coverage to be considered legally insured. If you want to drive in a state that doesn’t require insurance, you need to prove that you have enough assets to pay for damages if you’re in a car accident. If you’re in an at-fault accident, you’re responsible for covering any bodily injuries or property damage the other party sustains. Without insurance, you would need to pay the out-of-pocket bills or potentially be sued by the other party.
If you’re looking for cheap insurance premiums, The General has options for drivers with imperfect credit and drivers who fall into the high-risk category. You can get a free insurance quote in under two minutes or explore more articles about car buying 101 on our blog.