How to Get a lower Car Insurance Rate

Car insurance is a fact of life and a requirement if you want to drive your car. Few people think about how much their car insurance will cost when they shop for a car and are often taken by surprise when they find out how much the premiums are. There are several ways you can save money on car insurance, if you know what to look for and the right questions to ask.

Car insurance premiums vary widely, so call several different companies to get the best rate. When you are comparing the different insurance quotes, make sure you are comparing apples to apples. Look through the quotes line by line to see how they match up and to make sure you really are getting a good value.

Also, check into the history and stability of the companies. A lower car insurance premium won’t do you any good if the company isn’t around when you need them or has a history of refusing legitimate claims. Get recommendations from friends, read consumer reviews and check out websites like A.M. Best and Standard & Poor's to find out about the financial health of the different car insurance companies.

Increasing your deductible, or the amount that you pay out of pocket before the policy becomes effective, will lower your car insurance rates. Raising your deductible from $200 to $500 can save you up to 15% to 30% on your car insurance premiums, and raising it to $1000 can save you a whopping 40%. Before you raise your deductible, make sure that you will actually be able to pay it if you ever need to make a claim.

Reduce Your Car Insurance Coverage

Full insurance coverage is required if you still owe money on the car, and it is a good idea if you have a newer or high valued car. However, if your car is older and not worth more than a few thousand dollars, you could consider only carrying liability insurance to lower your car insurance rates. Liability insurance will only cover the costs for the other vehicle and driver if you get into an accident, so make sure you can afford to cover your own costs or live with the damage.

It’s about who you know, or rather, who you are affiliated with. Being a member of certain organizations can save you money on car insurance. Some insurance agents will tell you about these savings, but some may not so be sure to ask.

Some types of organizations that may get you a better deal on car insurance are your sorority or fraternity, community clubs, professional organizations, credit cards, credit union, your employer or the college or university you graduated from.

Multi-Policy Discounts for Car Insurance

Company Loyalty has its rewards, and you may be able to get a lower car insurance rate if you use the same company that insures your home or other cars. You may also get a lower car insurance rate if you stay with the same company for several years without making a claim. Be sure to ask when you renew your policy for a renewal discount.

The type of car you buy can affect how high your car insurance premiums are. Some cars cost more to repair, have a poor safety record or are more likely to be stolen. If you buy a car with these types of characteristics, your car insurance premium will be higher because your car has the potential to cost the insurance company more money. Once you have found a car that you like, check with your insurance agent to find out how much it will cost to insure before you buy it so you are not surprised.

You may also get a lower car insurance rate if you buy a car with certain features that make the car less of a risk for the insurance company. Some features to look for are lower mileage, anti-lock brakes, automatic seatbelts, airbags and anti-theft systems.

Your driving record plays a part in how high your car insurance premiums are. Drive safely and follow parking and driving laws to avoid getting a ticket. If you do end up with points on your license, take a class to have some of them removed so you can get a lower car insurance rate.

Your credit score can also raise or lower your car insurance premiums. Insurance companies have found that people with low credit scores tend to make more insurance claims and make their payments late. So, if you have a high credit score, your insurance rates will be lower than someone with a low credit score.

Insurance companies may also check your credit occasionally even after you initially sign up with them and adjust your insurance premiums accordingly. Make sure you check your credit report each year so you have time to improve it or make any necessary corrections to keep your insurance premiums as low as possible.