6 Ways To Lower Your Auto Insurance Premiums

6 Ways To Lower Your Auto Insurance Premiums

If you drive a car you know how expensive it can be. First of all, there’s the rising cost of gas, the high cost of repairs and maintenance and on top of that there’s auto insurance. While you may not be able to change the price of gas or repairs, you can however lower the cost of your auto insurance premiums.

Here are 6 ways you can pay less:

Compare Prices

Before you buy a television you probably go comparison shopping. So why wouldn’t you do the same for your car insurance? There are countless companies around who are all competing for your business. There are some comparison sites which allow you to input some basic information about your car, your age and where you live. You’ll instantly receive several quotes from a few different insurance companies.

Choose The Right Company

Just because a company offers the lowest monthly prices doesn’t mean that’s the one you should choose. Sometimes, they will only cover the most basic situations. What if your car is stolen? You are probably not covered. It costs extra to add it on. What if you are hit by an uninsured driver, are you covered? If not, you’ll pay an additional monthly fee to add it. Do you have roadside assistance? Because if not you’ll have to buy it elsewhere. So as you can see, the cheapest option may not be so cheap after all.

Have A Good Credit Score

It may seem ridiculous, but your credit score can also determine how much you pay for car insurance. If you have good credit you get something called a financial stability discount. The thinking is that someone with good credit is typically a safer driver than someone with bad credit. It makes sense though, as those with bad credit are known to take careless risks.

Bundle Your Insurances

Big companies such as Farmers, Nationwide and AllState offer auto insurance, life insurance and homeowners insurance. When you get your homeowners or renters insurance policy and car insurance policy with the same company you will receive a discount on both. It makes financial sense to bundle.

Raise Your Deductible

If you have a low deductible you are paying far too much for your insurance. To lower your monthly payment, raise your deductible to the highest amount your insurance company allows. This one act will definitely lower your premiums by your next bill. The downside of this of course is that if you get into an accident, you are responsible for all costs up to your new higher deductible.

Preferred Occupation

Certain occupations are eligible for a discount on their auto insurance policy. These jobs include: doctors, nurses, police officers, firefighters and teachers. Members of the military will also qualify for up to a 15% discount on their monthly premiums. And believe it or not you may actually get a discount for being self employed too. Not because of the actual job you do, but because you rarely use your car.

About The Author

Edwin is a marketer, social media influencer and head writer here at Frugal Wiz. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

1 Comment

  1. Betsy @ ConsumerFu

    Great list, but you left off an important one – don’t drive like a maniac. Follow traffic laws…basically don’t get tickets.

    We have two teen drivers and one is about to see her premium drop because she’s been driving 4 years. It’s crazy what they charge for teens.

    Reply

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