It seems like everyone is obsessed with how to get a lower car insurance rate. Every time you turn on the radio or T.V. you are bombarded with commercial after commercial about getting cheaper car insurance. How to pay less for car insurance with Geico or how to get lower insurance rates with Progressive, it’s all over the place! In today’s article, we’re going to go over 7 things that will teach you how to get low car insurance. Let’s go!
How To Reduce Insurance Cost- 7 Tips
The more vehicles you have on your policy the better chance you have to lower your car insurance. In fact, many times, when you go from one vehicle to 2 vehicles, the monthly price of your car insurance will only increase by a couple dollars.
Telematics are becoming increasingly popular in the car insurance world. If you’re wondering how to get lower car insurance then you need to look into telematics. Telematics simply means that your insurance company is going to monitor your driving habits. Either by using a device you plug into your car or by an app you download on your phone.
Through the use of telematics, your insurance company will monitor the following things:
- How much you’re driving
- When you’re driving (time of day)
- How fast you’re accelerating
- How fast you’re breaking
Each car insurance company is different when determining how to reduce car insurance premiums but generally you’ll be monitored anywhere for 3 to 6 months. After the monitoring process the insurance company will take the information they’ve gathered and decide how much of a discount you’ll get. Most discounts range from 5% to 30%. If you’re a safe and good driver, imagine getting a 30% discount on top of your existing rate!
Below is a list of car insurance companies that offer telematics:
- Progressive- Snapshot
- Allstate- Drivewise
- Farmers- Signal
- Esurance- DriveSense
- Nationwide- SmartRide
- Liberty Mutual- RightTrack
- State Farm- Drive Safe & Save
- Geico- DriveEasy
- USAA- SafePilot
- Root Car Insurance
- American Family- MilesMyWay
- Travelers- IntelliDrive
One note of caution- some of these auto insurance companies will use the data they collect to raise your rates! The point of telematics is to get a lower insurance rate. However, if your results are not great, your rate may be raised, rather than lowered. So make sure you check with the insurance company to make sure this wont happen.
Use a Broker
Using an insurance broker ensures you find the best price on your car insurance. Companies like Allstate, State Farm and Geico can only offer quotes from their specific company. This leaves you without options. This is why you see companies like Geico and State Farm with huge marketing budgets. They know they wont always be the best price, so they have to spend lots of money to get you to call them and sign up for their insurance.
When you use an insurance broker, the broker works for you. They don’t care what company you’re with, they simply care that you have the best coverage and the best rate. Instead of working for one single company an insurance broker can have access to up to 50 companies. This takes the burden of shopping for insurance away from you. When using a broker you can be sure you’re getting the best rate and coverage. They are experienced and knowledgeable enough to teach you how to reduce car insurance rates.
Higher deductibles can greatly reduce your car insurance premiums. Most people solely focus on their deductible and think this is the most important coverage. In the large scheme of things, this is a coverage that you can afford to play around with. (Bodily Injury Liability Coverage is the coverage you don’t want to play around with, find out more information here). As we talk about here, you don’t’ want to file claims for many small things. You only want to file claims for large accidents, accidents that are at least $2,000 or more. So it makes sense to raise your deductible to $1,500 or even $2,000.
By raising your deductible you can see a huge savings on your car insurance. It not only saves on your monthly premium, but it also saves you from filing small claims and having your insurance company raise your rates. Call your insurance company today and ask how much it will save you to raise your deductible.
Shop before you buy a vehicle
If you’re worried about paying too much for car insurance, then the last thing you want to do is purchase a car without first checking with your insurance company. If you have an existing policy, you should call your insurance agent before you buy a car. You can give them a list of the few cars you’re considering and they can give you rough estimates as to how much each car will help you. This will help you decide which car is best to buy and it will also prevent any surprises in your insurance premium after the fact.
You here it all the time, especially on those Progressive commercials- Bundling your auto and home insurance can save you lots of money! This isn’t always the case and that’s why it’s important to work with and insurance broker. However, the majority of the time, you can save by insuring your auto and home insurance with the same company. The discount for bundling can sometimes be as much as 30%, that’s a lot of savings! If you have other insurance polices like life insurance, motorcycle insurance, umbrella insurance or anything else, it also helps to bundle those things together as well. Aside from the savings, having all these things in one place will make your life much more easier as well.
Pay In Full
Paying in full for your car insurance can result in huge discounts. If you have the option and the means, take the opportunity and save 100’s of dollars! If you can’t quite swing paying a large sum up front then you’ll want to consider monthly automatic payments. Car insurance companies will generally give you a lower monthly rate if you agree to have them automatically deduct the premium from your checking account each month. Insurance companies are more likely to give you a better rate by paying in full or automatically because it ensures that they will get their money from you!
As you can see, there are many ways to help lower your car insurance rate. Now its up to you, hopefully these things taught you how can you reduce your insurance policy payment. As mentioned in this article and as we mention in every article, make sure you work with an independent insurance agent. They are aware of all these cost saving techniques on how to lower insurance premiums and can do the work quickly for you. To get started on an insurance quote from an experienced insurance agent, click here.