Lower Your Car Insurance Rates

by Marcy on February 20, 2015 · 0 comments

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Lower Your Car Insurance Rates

If you’re buying car insurance for the first time, or if your current policy is about to expire, you have a good chance to pay less for your next policy. The first thing you should do is to get car insurance quotes from five companies. When you compare prices, make sure you are getting the same coverage for the same price.

How to Lower Car Insurance Payments?

Insurance companies want to lower their risk. If they have less chance of paying a claim, they are more willing to give lower prices for coverage. Some companies won’t even insure high-risk cars or drivers, or they charge a small fortune. There are a few ways you can demonstrate to your insurance company that you are a low risk, which will in turn lower your monthly payment.

Have a High Deductible

Your deductible is the amount you pay before your insurance company starts to pay. If it’s very low, your monthly payments will be high. If you agree to pay a higher amount up-front if you need to make a claim, your monthly payments will be lower. The only catch is that you need to keep that amount in a secure account, so you don’t spend it, and it’s ready if it’s needed.

Take a Driver’s Education Class

Most insurance companies will reduce the cost of car insurance if you can prove you have successfully completed a driver’s education course. This works for adults as well as teenagers. When you complete the course, you’ll get a certificate that you present to the insurance salesperson.

Select the Right Car

Insurance companies charge more for high-profile cars. Even a simple racing stripe can raise your payments. A Porsche or Ferrari may not be on your list of new cars, but you can research the cost of insuring vehicles and select a car that has a low insurance profile.

Drive Fewer Miles

This option may not be possible for everyone, but if you can take public transportation, a bicycle or walk part of the time, you’ll reduce your car insurance payments by as much as 50 percent for some companies. You’ll probably need to pay for device that counts your miles, but this is nominal compared to the reduced cost of the insurance.

There are several simple ways you can be seen by your car insurance company as low risk. If you’re on a tight budget, these tips will help a lot.

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