Ways You Can Lower Your Car Insurance

You can save money on your car insurance premium in a number of ways. For instance, you can raise your deductible or drop a type of coverage and your premium will go down. Your deductible is the amount you are willing to bear just in case you meet with an accident. Make sure that you have enough savings before you raise your deductible.

Reduce the number of miles you drive in a year.

Most car insurance companies will consider a driver who drives less than 12,000 miles in a year as low risk. A driver who drives more than 12,000 miles in a year is considered high risk and will have to pay slightly higher premiums. By informing your insurer that you don’t drive more than 12,000 miles in a year, you will be able to save some money on your premiums.

Exclude high risk drivers from your policy.

When you buy an insurance policy it will typically cover every driver you mention. An experienced driver is considered low risk whereas a newly licensed person is considered high risk. By excluding a newly licensed person from your policy you can reduce your premium. This, however, means that you will not be able to make a claim if an accident does occur with the uninsured driver behind the wheel.

Drive a car that costs less to repair.

When insurance companies determine the cost of your collision and comprehensive coverage, they do take into account the estimated cost of repairs. Hence, if you prefer a low premium, you should drive a car that costs less to repair.

Purchase multiple policies.

Most insurance companies will readily give a multi-policy discount to policy holders who have several different types of insurances with them. For instance, if you have a life insurance or a home owner’s policy along with an car insurance policy you will be able to save around 10-20% per policy.

Maintain a clean driving record.

A good driver discount is easy to obtain and may help save you up to 20% on your policy. This will indeed give you you a cheaper car insurance rate.

Install a car alarm or a theft recovery system.

It will typically save around 10% depending on what type of device it is.

Good Student Discount.

Students under the age of 25 are eligible to receive a good student discount on their auto insurance if they have good grades.