5 Easy Ways To Have Affordable Car Insurance

April 29, 2011

Getting affordable car insurance can be easier than most people think. By taking the time to compare quotes and ask about car insurance discounts, you can potentially save yourself hundreds of dollars. You can get low car insurance premiums by following these tips:

Raise your deductibles. A deductible is the amount of money you are responsible for paying when you file an insurance claim to get your vehicle repaired. After you pay your part, your insurance company will pay the balance up to a predetermined limit. Raising your deductible will lower your car insurance premium. However, be aware that raising your deductible means you’ll pay more out of pocket in the event of an accident.

Pay your bill annually or biannually. Many car insurance companies offer discounted car insurance rates if you pay your entire bill up front. By paying for your auto insurance every six months or once a year, you will be rewarded with lower car insurance premiums.

Drive fewer miles. One factor that may affect your car insurance premium is the average amount of miles you put on your vehicle in a year. By reducing annual car mileage, you lower your risk of getting into an accident, which in turn lowers your car insurance premium. To qualify for this discount, consider carpooling, riding your bike, walking or taking public transportation.    

Hold multiple policies with the same company. If you own or rent your home, have multiple cars or need other types of insurance, get all of your policies from one insurance company. Many insurance companies offer car insurance discounts for doing this.

Maintain good credit. Credit and bill-payment histories not only help determine whether or not you receive a bank loan, they also affect auto insurance rates. Many insurance companies use a credit-based insurance score to determine insurance premiums. The score helps ensure that each customer receives a rate that is appropriate to his or her individual credit history. Often, the better your score, the lower your car insurance premium. You can improve your score by always paying bills on time and minimizing debt.  Also be sure to monitor your credit score and correct any errors you may find.

Now that you’ve learned a few strategies on how to find affordable car insurance, contact several reputable auto insurance companies and compare each car insurance premium. Discuss the car insurance discounts you are eligible for with an agent, and you’ll be on your way to protecting yourself and your vehicle.

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