How to Get the Cheapest Car Insurance Rates
Owning a car comes with the legal responsibility of having car insurance. Without proper coverage, you risk heavy fines or footing bills yourself if an accident occurs. Here are tips for getting the most affordable car insurance rates.
1. Compare Rates Across Providers
Rates can vary widely between insurance providers, so shopping around is key. Get quotes from at least 5-6 companies to compare. Look at national insurers like GEICO, Allstate, and State Farm as well as local options. Evaluate factors like customer satisfaction, financial strength ratings, available discounts, and more along with rate itself. A little time investment can yield significant savings.
2. Consider Your Vehicle
Insurers classify vehicles into different risk categories based on accident history, repair costs, injury claims and more. Opting for a used sedan over a flashy sports car can make a big premium difference. Before purchasing a car, get insurance quotes on different makes and models you are considering to understand ongoing costs. Also look for safety features like airbags and anti-lock brakes that may qualify you for discounts.
3. Maintain Good Credit
Your credit score plays a major role in determining your rates. Insurers view policyholders with poor credit as higher risk and charge more accordingly. Pay bills on time, keep credit card balances low, and correct errors on your credit report to boost your score. Consider asking your insurer for a list of discounts related to good credit. Improving yours could directly reduce premiums.
4. Enroll in Telematics Programs
Many insurers now offer telematics programs where a monitoring device is installed in your car to track driving habits. This allows premiums to be customized based on actual observed behaviors like speed, acceleration, braking, cornering and mileage. Safe driving practices can be rewarded with significant discounts. However, risky behaviors may increase rates.
5. Bundle Home and Auto Policies
Purchasing both your home and auto insurance from the same provider can yield a bundling discount of 10-15% or more. You also simplify payments and paperwork with a combined policy. Evaluate bundle quotes during your comparison shopping. Just ensure the bundled rate truly offers savings versus buying separate cheaper policies.
6. Raise Your Deductible
Opting for a higher deductible means you pay more out-of-pocket if a claim is filed, but your premiums will be substantially lower. Consider whether you have sufficient funds in savings to handle a $500, $1000 or $2000 deductible if needed. This route makes premiums more affordable but comes with higher potential payouts in the event of an accident or claim.
7. Take Advantage of Discounts
Most insurers offer savings opportunities through various discounts. These may include good driver, good student, defensive driver course completion, multiple vehicle, paperless billing, new customer, and more. Ask representatives what discounts your profile might qualify for. Even 5-10% off can add up to major annual savings.
With some diligence, you can secure quality car insurance that fits your budget. Compare top providers using online quote tools. Consider ways your driving, vehicle, and lifestyle factors impact pricing. Leverage every discount possible. Invest time upfront and you’ll be rewarded with maximum savings.
