Making your regular auto insurance premium payment can be a painful experience. The premium is usually a major component to a driver’s budget, and at least some car insurance is required by law for most drivers. Finding ways to save money on your car insurance premium can help you to reduce your total expenses each month. You may think that you have the lowest auto premium payment possible, but the reality is that there are numerous steps that most drivers can take to reduce their premium charge. When you understand what these steps are, you can act to lower your premium going forward. You may even combine multiple steps together to increase your overall auto insurance savings.
Choose a Higher Deductible
One of the easier steps that most drivers can take to reduce premium costs is to request a higher deductible. The deductible may be adjusted within reason, and it directly affects premium costs. A standard deductible amount for most policies is $500, and you could reasonably ask for a $750 or even a $1,000 deductible to lower your premium. However, you will need to pay the higher deductible amount if you need to file a claim. To ensure that you have money to pay this deductible if the situation arises, consider increasing the amount you put into your savings account over time.
Another way to save money on your premium is to shop around and look at cheap car insurance quotes regularly. Many drivers shopped around when they originally purchased their current policy, but it is worthwhile to shop around every year. This is because your own factors that contribute to premium amounts can change. This includes your age, your driving record, the replacement value of your car and more. The methods that car insurance companies use to analyze these factors and their overall rates can also change. The policy that was most affordable last year may no longer be the most affordable option this year. Using an online auto insurance comparison website may be an easy and time-saving way to get started shopping for lower rates.
Look for Discounts
Most car insurance companies offer at least a few driver discounts, and some have more than a dozen different discounts. Each insurance company, however, has different requirements for their deductibles. The financial benefit of the deductible can also vary. For example, you may qualify for a two percent discount for a good driving record with one provider and a flat ten-dollar discount with another provider. Through a third provider, you may not qualify for this type of discount at all. Other types of discounts may be include being a student driver or a senior driver, driving low miles each year and more. By looking for discounts when you shop around, you can more easily find a great deal on car insurance.
Improve Your Driving Record
Your driving record can play a major role in the cost of your auto insurance cost. If you have had a few accidents or tickets within the last few years, there is a good chance that your driving record could be causing you to qualify for a higher premium. Spend the next year concentrating on being a safe driver and following the rules of the road. Each year that passes without an accident or ticket may help you to gradually decrease your auto insurance amount. In addition to lowering your premium rate directly, a good driving record may help you to qualify for an additional safe driver discount.
Paying a small fortune for your auto insurance premium can be financially difficult for some people. Nobody wants to pay more for an expense than they need to. The cost of your premium is at least partially in your hands. Each of these steps can help you to reduce your auto insurance cost in different ways, and today is a great day to begin acting on these money-saving steps.