It might be tempting to fully opt-out of car insurance to save money, especially when premiums are so high, but completely foregoing coverage leaves you more vulnerable to financial loss in the future. While skipping coverage might seem like a way to save, driving without insurance is illegal in most states. Instead, learn how to get lower car insurance premiums by applying smart strategies that reduce your rate while keeping the coverage you need. Let’s dive into the proven tips and tricks for how to lower auto insurance costs, without sacrificing safety.
Key Takeaways
- Shopping around and comparing multiple quotes is one of the fastest ways to find lower car insurance premiums.
- Choosing a car that’s inexpensive to insure, reducing your mileage, and maintaining good credit can significantly lower your rates.
- Take advantage of bundling, driver incentives, and other available discounts.
Compare Quotes to Find the Best Rate
One of the most effective ways to lower your car insurance premium is by comparing rates from different providers. Every insurer calculates rates differently based on things like driving history, credit score, location, age, and other factors. Getting at least three quotes can reveal which plan works best for you. The General has tips to compare car insurance quotes online, helping you find the right coverage at the right price.
Choose a Car That’s Inexpensive to Insure
When car shopping, it’s important to look beyond the car’s aesthetics. Vehicles that are cheaper to insure are often ones that have high safety ratings, low repair costs, and aren’t commonly targeted for theft. Luxury vehicles and sports cars usually come with higher premiums because they fall in line with poor safety rating and are often targeted for theft. Choosing a more practical model is a smart move if your goal is to ultimately lower your car insurance from the start.
Look for Discounts
Many drivers miss out on savings simply because they are unaware that the savings exist. From good-student and safe-driver discounts to savings for anti-theft device installations or defensive driving certificates, most insurers offer multiple ways to lower auto insurance rates. The General offers a variety of discount opportunities that can help you save more on your policy.
Raise Your Deductible
A 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. A higher deductible generally means a lower monthly payment, but a higher incident payout, so make sure you raise your deductible to a level you’re financially comfortable with.
Maintain a Good Credit Score
Wondering how to lower your car insurance without changing your coverage? Start by improving your credit. Many insurance companies consider credit scores when determining premiums. Data shows that drivers with higher credit scores tend to file fewer claims, so keeping your score strong, paying your bills on time, and keeping credit card balances low can all help in consideration for a lower insurance premium.
Reduce Your Mileage
If you drive less than the average person, you may qualify for a low-milage discount. If you do find yourself driving often, try cutting back on miles by carpooling, biking, working from home, or taking public transit. The less miles you put on your car, the lower your insurance costs will be. Consider usage-based insurance that track your milage and driving habits, these types of coverage offer more personalized rates. Explore flexible coverage options with The General that may work in your favor if you drive less.
Bundle Your Policies
Bundling multiple insurance policies under one provider is a popular way to lower car insurance. Whether you combine auto and home insurance, or insure multiple vehicles under the same plan, most providers offer discounts for policy bundling. Some insurance companies even allow bundling between spouses or family members for added savings.
Why Do You Need Car Insurance?
The reason we need car insurance is to protect ourselves from financial loss should an incident ever occur. Forty-eight out of fifty states require drivers to carry a minimum amount of liability coverage to be considered legally insured. If you’re involved in an accident without coverage, you could face legal penalties, or lawsuits on top of the financial loss of the incident. If you’re in an at-fault accident, you’re responsible for covering any bodily injuries or property damage the other party sustains, something that insurance mitigates through coverage. That is why the focus should be on how to lower your car insurance safely, not skipping it altogether.
Find Affordable Car Insurance with The General
If you’re looking for affordable insurance premiums, The General specializes in coverage for high-risk drivers and those with poor credit or driving records. Get a free, personalized quote in under two minutes and explore more car insurance tips to keep yourself safe and covered for any situation.
