As you probably already know, car insurance is mandatory.
Let’s go over the most important factors that will drive your rates lower.
* Drive a vehicle that is cheap to insure
While this may sound like common sense to you, surprisingly many people spend days and weeks looking for the right car, without even considering the cost of coverage. Stay away from sports cars with powerful V8 engines. This means Corvette, Porsche and other performance cars. Also, take a couple of minutes and check out the list of most stolen cars. You might be surprised that boring cars like the Honda Accord make this list every year. You’ll pay about 20% more to insure one of these cars that thieves target the most. Stick to a gently used car like a Subaru Forester, and you’ll have a super-safe ride that’s also cheap to insure.
* Maintain a good credit score
Carriers are putting more emphasis lately on a person’s credit score. The better your credit rating, the less you’ll pay for coverage. The reasoning behind this is, of course, risk. People who are less financially risky are more likely to be more responsible drivers and not make reckless driving decisions. If you have a low score, take action now to raise it higher and also make sure there are no false items on your report that are dragging you down. Look for a credit score of 700 or higher and insurers will offer you some great deals.
* Live in a Rural Area
If you’re thinking of moving out of town, you may be pleasantly surprised that you can save more on auto insurance. Big cities that are naturally congested have higher rates because there are simply more cars on the road, increasing the chance of having an accident. Do a little research online and you can save hundreds.
* Increase your deductible
This is a very easy tip that you should seriously consider and it is something that you can control 100%. Setting your deductible higher, $1,000 or more, will save you on average about 10%. The problem is that you will need to save all this amount in case you have an accident and file a claim. If you have a really old car, over 10 years old, it’s not worth getting a high deductible because the value of your car may only be $2,000 or $3,000. On the other hand, if you have a new vehicle, you’ll pay more for coverage, so this is a great way to get a price break.
* Leave Useless Coverage
If you’re in the market for auto insurance, take a look at your old policy. Read it carefully and review each point. Do you see any coverage that was not needed? If so, when requesting future quotes, get rid of unnecessary extras. For example, if your credit card company already has you covered for rentals, you don’t need additional coverage from your carrier. The same goes for towing and roadside assistance if you have a plan with an A³ plan. Get the coverage you need and nothing more, and save your hard-earned money.
* Get as many discounts as you can
Insurers want your business, and a common incentive most use to attract you is discounts. Most providers have various discounts available. Your job is to take advantage of each one you qualify for. Some of the offers vary, but can range from 5% to more than 10%. Here are some of the most common.
1.Safe driver
This means no or very few fines and no recorded accidents.
2. Low mileage
If you drive less than 1,000 miles per month, you may qualify.
3. Military
If you are currently an active military member of a veterinarian, you can save about 5%.
4. Good student
Students who have and maintain a GPA of B or higher can get discounts of up to 10%.
5. Pack of various cars and houses
Insurers want your business, and you can save a lot of money by bundling all your vehicles and home into one company.
6. Enhanced Security Features
If you have special safety upgrades on your vehicle, like dual airbags, anti-lock brakes, and a GPS-based security alarm, you may qualify for a great discount.