Vehicle insurance premiums can be high, especially in some high-risk zip codes, after an at-fault accident, traffic violation conviction and for young and high risk drivers. There are a few ways of reducing costs a bit and bringing them to affordable levels by using saving opportunities, qualifying for more discounts and shopping around to find the best deals. Every little helps especially when costs are over your budget and you need to save money on automobile insurance.
Here are some of the most effective, easy to follow, easy to qualify for, immediately usable and best tips to help you find affordable car insurance:
- Buy the right car
Particulars of your vehicle significantly influence insurance costs, and if you’re already considered a high-risk driver, choosing a riskier car can exacerbate the situation. There is not much you can do about being a young driver or having a teenage child in your household but you can manage the costs by finding the right car for the circumstances. For example, many families designate their least valuable automobile for the teenage driver and buy liability-only coverage for it. Then, they can exclude such a driver from their other vehicle insurance policies thereby saving even further on the overall costs. In such scenarios, it may make sense to minimize risks until the teenager reaches their twenties and becomes eligible for more cost-effective auto insurance rates.
- Look after your credit score
A challenge faced by individuals with limited income is financial constraints. Consequently, their credit reports often reflect low scores due to missed payments, inadequate credit card management, and many credit applications. Recent research reveals that maintaining an excellent credit score can result in vehicle insurance rates that are up to 52% more affordable. While it may seem challenging, adopting practices such as refraining from excessive loan or credit card applications and consistently paying off credit card balances on time can make a substantial difference on your credit score.
- Avoid loading up coverage
When you are struggling to find affordable car insurance quotes you cannot afford to be generous with your coverage. Have a good look at your coverage and see if you need everything there or you can safely give up some. For example, if you are a young man who is just starting his first job and driving an old car, you may be alright sticking with minimum coverage required by your state until you can afford to pay more or start getting lower rates.
- Consider increasing deductibles
Sometimes people can be good drivers and still get unaffordable automobile insurance rates because they may be living in a bad neighborhood or have bad credit. For those motorists, increasing deductibles can be a good solution to reduce premiums. If you haven’t had any claims for a long while you are less likely to make a claim going forward. So, it may make sense to increase car insurance deductibles because when they are higher premiums go lower. This is not a good solution for people who have high premiums because they have too many claims. Also, if you don’t have any savings to fall back on when you need to pay a deductible, you need to be cautious about increasing them.
- Consider a telematics based policy
Many companies offer telematics-based programs that give them access to policyholders’ driving habits. These programs can benefit teen drivers and those facing increased insurance premiums after accidents. Many providers offer discounts for just participating in these plans since they are known to make drivers more aware of their driving habits and improve them. To qualify for discounts, drivers must demonstrate good behavior, such as avoiding late-night driving, speeding, and excessive braking, while reducing mileage can also be advantageous since it’s monitored.
- Measure mileage
Some people may actually be driving much less than the national average of 14,263 miles a year and deserving lower rates and not aware of it. For example teenagers drive on average 7,600 miles a year. If you don’t measure your mileage and let insurers know when you are getting quotes, they base their quotes on the assumption that you drive about the average. Pay-per-mile auto insurance policies, which rely on telematics or mobile apps to calculate mileage, can be a cost-effective option for individuals who drive fewer than 8,000 miles per year. Monitoring and managing your mileage can reduce your car insurance costs. If you’re struggling to pay insurance premiums, don’t miss out on potential savings and avoid paying for miles you don’t drive.
- Share policies
A few insurers offer the option of purchasing multi-car insurance policies for individuals residing in the same household, including roommates, who can benefit from savings of approximately 15% each, regardless of whether they are family members or not.
- Shop around and do it early
Shopping around is a highly effective way to reduce your vehicle insurance costs to more affordable levels. Obtain multiple quotes to identify the most competitive provider for your specific situation, which is a straightforward, efficient, and money-saving process. When you shop around upon receiving your renewal notice, you gain the advantage of extra time for careful consideration and can even qualify for an Advance Purchase discount. By simply completing your car insurance purchase a few days prior to renewal you can take advantage of this easy saving opportunity.
- Buy and sign your policy online
There are a few companies like Progressive clearly advertising to offer cheaper quotes online, as well as offering further discounts for buying online and signing your policy documents digitally. You can get further savings if you go paperless with some companies. Every little helps to make your auto insurance more affordable.
- Pay the premium in full
Not only do you get around a 9% discount for paying your vehicle insurance premium in full but also you avoid installment fees and save money. 9% can mean a lot of dollars when you have high rates.
Take a few moments to thoroughly review all potential discounts you may be eligible for, and remember to inquire about them. Often, paying attention to the specifics when completing car insurance quote forms or discussing details with an agent can automatically qualify you for cost savings. For example, something as simple as checking the “married” box (if you are married) can result in lower rates with many companies. When striving to make your auto insurance more affordable, it’s crucial to be diligent, observant, and unafraid to ask because most agents are willing to explore ways to help you save money if you approach them politely and inquire.