Why Pay More for Car Insurance?

Nobody likes to pay more than they have to for, well, almost anything. And that includes car insurance.

Shopping around for the right insurance policy at the right price can be challenging. But there are lots of ways to trim costs and still obtain sufficient coverage.

Here are some tips for getting discounts on a new policy or for a current one:

  • Go for a higher deductible.
  • Buying car and homeowners insurance with the same company can often lead to discounts.
  • Look for providers that offer lower rates for group plans, such as those with a business, professional, or alumni group or association.
  • If you’re a low-mileage driver you could be eligible for a discount, since that typically lessens the probability of getting into an accident.
  • Automatic online bill pay and receiving bills in e-mail rather than paper format are often rewarded with discounts.
  • Many companies will offer reduced rates to those who haven’t had any accidents or moving violations within a certain period.
  • Security and safety features – such as antilock brakes and car alarms – typically lead to lower insurance premiums.
  • Check out a variety of insurance carriers. And remember that just because a provider is a well-known entity doesn’t mean it has the best rates.
  • Paying a full year’s worth of premiums could reduce the cost of a policy, especially if the provider tacks on administrative fees to monthly payments.
  • Students with good grades are often rewarded with discounts, as are individuals over 50 who are experienced drivers with clean driving records.
  • Many insurers will take good credit history into account when pricing premiums, particularly because studies show that people with strong credit histories usually file fewer claims.
  • Don’t pay for more coverage than necessary. For example, you won’t need towing services included in a policy if you already have that available through a car club such as AAA.
  • Do you pamper your car? It could pay. Some providers offer a discount for vehicles that are kept in a garage.

Remember that you can still achieve greater savings even after you purchase a policy. Review your coverage at least once a year to see if there are any changes that could lead to lower costs, while still maintaining adequate coverage.

 

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