There are many factors that affect how much you pay for car insurance coverage. While you cannot control many of these factors, such as your age and gender, there are others that you can control. If you want to reduce your car insurance costs, here are some changes you can make that will help you do so.
Increase Your Deductible
When you purchase an automobile insurance policy, you will be asked how much of a deductible that you want. While most people take a lower amount, such as $250, if you ask for a higher deductible, you may pay less for your insurance. According to Rob Sorensen, a Heber City car insurance provider, even a smaller increase, such as going from $200 to $500 could mean savings of 15% to 30%. If you can afford it, you will see even bigger savings with a $1,000 deductible.
Reduce Your Coverage
Once your car has been paid off, or if you have an older car, reduce the type of coverage that you have on it. Instead of using full coverage, which is required by most lenders if you are making payments on a car, ask for collision insurance or drop your coverage to liability only. You will see a significant reduction in your insurance premiums when you make the change.
Maintain a Good Credit Rating
In some states, having good credit will help keep your insurance premiums at a reasonable rate. Even if you currently have bad credit, you can repair it by paying your bills on time and using your credit more responsibly. In addition, regularly check your credit report to make sure there are no errors on it. If you do spot mistakes, contact the credit bureaus to have the errors rectified.
Look for Discounts
There are many ways to reduce your car insurance premiums through discounts. If you own your home, look to see if you can get a discount by having your home and auto insurance with the same company. You can also save by having all of your vehicles insured with the same insurance company as well. If you are older and have AARP, check to see if you can get a discount on insurance through them.
You can help control your own insurance premiums through good driving habits, as well as cutting insurance coverage you don’t need, increasing your deductible, and by having a good credit history. Every time your insurance policy is about to expire, review it before you renew it.