Two ways to lower car insurance rates are avoiding collisions and tickets. But here are ten lesser-known ways that can also help reduce your monthly cost.
1. Take Advantage of Bulk Rates
In most cases, you’ll save money by insuring multiple vehicles under one policy. As a general rule, multiple drivers must be related and live at the same residence to qualify for this discount. However, there is an exception for two unrelated people who jointly own the vehicle. Discounts also kick in when you bundle auto and homeowner’s insurance with the same provider. Pro tip: If you insure a teen driver on your policy, you can expect your rates to rise. However, if your child has a B-average GPA or above, you may be eligible for a “good student” discount. Discounts vary but generally fall between one and 40 percent.
2. Take a Continuing Education Course
You may have been behind the wheel for your entire life, but you’re never too old to learn. Many insurance companies reward drivers for taking an approved defensive driving course. In many cases, courses can be completed online for as little as $25.
3. Drive Less
The more miles you drive, the bigger the liability. That’s how insurance companies see it. You can limit wear at tear on your car and reduce car insurance costs by driving fewer miles every year. So pull out your bike, take the subway, hop on a bus, or join a carpool. You’ll not only save some money, but you’ll also extend the life of your car and reduce emissions while you do it.
It’s nice to have nice things. But let’s be honest: Do you really need that gas-guzzling SUV and the $500/month payment that comes with it? Maybe, maybe not. You can reduce your car insurance rates by driving a smaller, lower-cost commuter vehicle. Some insurance companies also offer additional discounts to people who drive hybrid or alternative fuel vehicles.
5. Raise Your Deductible
When you sign up for car insurance, you choose a deductible—the lower the deductible, the higher your monthly rate. You can shave several percentage points off your monthly rate by raising your deductible.
6. Pay Attention to Your Credit
This may come as a surprise, but insurers assess more than your driving record when determining your rates. They also look at your credit because auto insurers operate under the assumption that you'll be less likely to file claims.
7. Consider Your Location
While it wouldn’t be financially feasible to relocate simply to reduce your monthly car insurance bill, location does impact rates.
Fortunately, California’s car insurance rates when compared to other states are reasonable. But if you move to Michigan, for example, you’ll be hit hard. According to a recent report by Statista, which specializes in analyzing market and consumer data, Michigan leads the pack as the most expensive state to insure a vehicle. On the flip side, the report shows that Iowa is the cheapest state to insure a vehicle.
8. Downgrade Your Coverage
Many consumers feel more comfortable carrying comprehensive insurance on their vehicles, regardless of age and condition. However, if you’re driving a clunker on its last leg, it probably doesn’t make sense to have premium coverage.
9. Install a Security System
Some car insurance providers offer discounts to drivers who install anti-theft systems in their vehicles. Discount rates vary.
10. Talk to Your Agent
You’ll never know if you don’t ask, right? So give your insurance agent a call and ask about discounts. Your provider may know a few creative ways to lower your rate. Helping You Find the Right Auto Insurance Policy
Here at Hoffman Hanono, we’ve offered affordable auto insurance solutions since 1959. Lean on our experience, and we’ll help you find a car insurance policy that fits your budget and needs. Get a quote today!