Tips To Lower Your Auto Insurance Premium
Auto insurance has increased by more than 15% in some states, leaving many drivers wondering how they can save money on their insurance policies. The location, car model, and driving record can affect the amount you pay for car insurance.
Luckily, we have some tips to help you keep your premium down.
Increase Your Credit Score
Auto insurance may seem like a small expense, accounting for only 3% of your income, but there are ways to reduce it. Improving your credit score is one method if your state allows it. Insurers may use your credit information to price policies.
Studies indicate that drivers who have good credit tend to submit fewer insurance claims. Raising your credit score can lead to significant savings on auto insurance.
Compare Insurance Costs
Comparing your insurance costs with other options at least once a year is advisable. It’s crucial to take other aspects into account, including financial stability and service quality. It’s still a good idea to look for a cheaper insurance policy with a different company.
Make Enquiries About Discounts
Insurers offer various discounts, such as having an anti-theft device or bundling auto. Bundling can save you 8% yearly. Also, taking a driver safety training course may save up to 15.2%. Low mileage can also yield a discount, as some insurers give a discount for driving an average of miles per year.
Benefits of Usage-Based Insurance
Many insurance companies offer usage-based policies that use a mobile app. The mobile app tracks your driving habits, and this can help you get discounts on your premiums.
Increase Your Deductible
Raising your deductible can result in a reduction of your premium, as it represents the sum you are responsible for paying when submitting a claim. Experts say that if you increase your deductible from $250 to $500, you could lower your insurance cost by 15% to 30%. However, it is advised that you should have enough money to pay the extra amount yourself if you need to make a claim.