Every month, when we’re sitting at the table and going through our bills, one of the main thoughts that cross many of our minds is “How can I find a way to get rid of some of the bills that I have?” Although you might be able to downsize your cable package or cell phone plan, one thing that you simply cannot go without (because it’s illegal to drive without it) is your car insurance policy.
That doesn’t mean that you have to pay ridiculously high premiums, though. We actually have done a bit of research and come up with five solid ways that you can reduce your car insurance so that when that particular bill shows up, you won’t be too stressed out about it.
Watch what you’re driving. There can be other benefits to purchasing (outright) a used vehicle. Aside from having no car note, it can make your insurance premiums much lower. New cars, luxury vehicles, and sports cars typically come with a higher insurance price tag than others, mostly because they don’t tend to fall into the “top safety class” category. So, if you’re considering purchasing a new model, that’s definitely something to keep in mind.
Drive wisely. If you haven’t been in a car accident in a few years, if you’ve gone 24 months without a speeding ticket, these are both things that can really work in your favor when it comes to negotiating a price with a car insurance agent. Although many companies look back about three years into your driving history, do beware that some go back as far as five. However, if your record is squeaky clean, you are bound to get a really good and/or negotiable rate.
Get a better credit rating. Is there anywhere that we can go and not have our credit score follow us? The answer would be a resounding “no. While it’s not yet allowed in the state of California, everywhere else in the country, insurance companies are able to take someone’s credit history into consideration when figuring out a policy fee. Why? Well, many believe that one’s credit score speaks to how responsible they are and so if you care enough to pay your bills on time, you’re probably also cautious about how you are on the road. (Makes sense.)
Pay a higher deductible. If you go to a website like CheapCarInsurance in order to get some insurance company referrals, as you’re coming to a decision of what one will be most suitable for you (and your budget), you might want to consider paying a higher deductible. Oftentimes, if you increase it by twice the amount that you have previously paid, you can reduce your premium by as much as 25 percent.
Go with one company. Insurance companies love to have loyal customers. Therefore, they are more than happy to offer a special deal for those who are willing to get all of their policies from them. So, if you have a life or home insurance policy with another company, strongly consider switching over to the one who issues you your car insurance. You’ll see a noticeable financial discount if you do.