If you feel like you’re paying too much for your car insurance, you’re not alone. High car insurance premiums tend to feel like a necessary evil, but there are some concrete steps you can take get a lower car insurance premium.
Lower your Premium by Taking out a Higher Deductible
The lower your deductible, the more your insurance costs you. Consider the value of your car and ask yourself how much you’d be willing to pay out of pocket up front if it was damaged in an accident. Even just increasing your deductible from $250 to $750 will have a positive impact on your premium.
Drop Unnecessary Coverage
If you have an older car, chances are you’re paying for extras you don’t actually need. Find out how much your car is worth currently and take a look at your insurance policy. Generally speaking, you shouldn’t be paying for collision and comprehensive coverage for any vehicle any that’s worth less than a thousand dollars. Even if you were to total the car, the payout you’d get from your insurance wouldn’t be worth how much you’re paying into it each month. Don’t forget that you have to subtract your deductible from how much the insurance will pay too.
Use Public Transit more Often/Drive Less
Depending on where you live, this might be impossible. The good news is, the more rurally situated you are, the less your insurance is likely to cost. For people in big cities or other urban areas where insurance rates can be through the roof, there are often tons of viable alternatives to driving everywhere. Your insurance premium is gauged by accident likelihood, meaning those who drive less often are usually the most likely to get the lowest rate.
Whether it’s taking public transit or opting to work from home more often, finding ways to decrease the distance you drive every year can have a significant impact on how much you pay for insurance.
Depending on your Occupation, you can Negotiate a Lower Premium
If you’re in a profession with a low accident rate, you stand a pretty good chance of getting a lower rate than others because you’re viewed as a safer driver by insurance companies. The onus is on you to look into what discounts you might qualify for. Professions like teaching, nursing, and accounting are near the top of the list.
Take Defensive Driving
This is something every driver should seriously consider just for their own sake, but you’re guaranteed to get a better insurance premium if you take defensive driving courses. Do your research and make sure you find a school that already has an established relationship with insurance companies to avoid being scammed.
Take out Multiple Policies with the Same Insurer (Auto and Home)
Much like when you bundle your phone and internet plans, insurance companies are more likely to give you a better deal when you take out multiple policies with them. If you have homeowners or renters insurance policy, look into getting your auto insurance from the same company.