Who doesn’t want to save money on car insurance? Especially when the national average has crossed $1,500. Louisiana has the distinction of having the highest car insurance rates at $2,699 and Maine has the lowest at $934. Now, we will not be discussing why there is so much disparity when it comes to paying auto insurance premiums as I have covered this in a different article which you can refer. If you wish to check the average car insurance premium in your state then you can click here.
There are many factors which are beyond one’s control when it comes paying more however you can still save money if one of the factors mentioned below affect your car insurance rates
Age: Young drivers under the age of 21 pay 48% more than their counterparts who are above 25 years
Gender Bias: Men generally pay 5% more than women.
Marital Status: If you are married, then you may find yourself paying 19% less as compared to your single counterparts. Another factor which plays a role here is your age. Married people will be older and hence more responsible. Due to this fact their car insurance premiums might be lower.
Homeowners Vs Renters: If you own a home then you would be paying lesser premiums than someone living on rent.
With all the above mentioned factors being taken care off, firstly it is important to know that how much auto insurance is enough? Once you know the basics of how car insurance works, then you will be in a better position to save money.
15 Effective Strategies To Keep Your Auto Insurance Premium Low
- Drive Responsibly: There is a significant impact of accidents on car insurance rates. You may also end up getting a speeding ticket. Be a safe driver to keep your car insurance rates low.
- Shop Around. Hit the internet and Compare. Car insurance rates vary drastically between various insurance providers. People have reported an annual saving of more than $500 dollars just by switching carriers. Independent car insurance agents represent many insurance companies and they are the best people to get you the best and cheapest rates.
- Always check if you really need the full auto insurance coverage or the minimum liability protection is enough.
- Are you carrying the right amount of coverage which matches your requirements? It is very important to understand the different coverage options to get the best deal.
- Keep your policy up to date. If you have moved houses, got married or divorced you may be eligible for lower car insurance rates.
- Understand the importance of deductible in your car insurance policy. It is said that raising your deductible to $500 can reduce your collision and comprehensive coverage by almost 30%.
- Check for discounts availability. Check for the ways you can obtain further discounts. Like, some insurance providers offer discounts on extra security features which you might have in your car (anti-theft alarm) etc.
- Try to protect your no claim bonus. When an individual files a claim on their car insurance policy, their premium rises in the subsequent year. If you do not claim, then you are eligible for a “no claim bonus” which is nothing but cheaper car insurance premiums.
- Check which payment option will suit you. You need to check if paying for car insurance monthly or annually will be cheaper.
- Enroll yourself into courses. Taking up a pass plus and speed awareness course and help you get discounts on your car insurance premium.
- Take advantage of low mileage discounts. Some of the insurance carriers offer discounts if you put fewer miles than the predetermined number each year.
- Check if usage based car insurance is the best option for you
- Having a better credit score is a win-win situation in every department of personal finance. Car insurance premiums are no exception. If you have a good credit score then you will be eligible for certain discounts.
- Choose to pay your auto insurance bills online. By doing so, you may attract discounted rates.
- Bundling you home and auto insurance payments also ask for a discounted rate.
- Being a good student, can get you discounts on your car insurance policy.
In this article you will find references to other important articles on this blog. All referred articles are beneficial in keeping your car insurance premiums low. It’s just a matter of knowing and research. I hope this comprehensive but concise guide will help you to get the best and cheap car insurance policy.