Higher car insurance rates seem like an inevitability, but there are ways to reduce your premium. (Photo: @jamiesue via Twenty20)

How to Lower Car Insurance Premiums

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Higher car insurance rates seem like an inevitability, but there are ways to reduce your premium. (Photo: @jamiesue via Twenty20)
Car insurance is a must-have for anyone who owns a vehicle, but unfortunately it can get a little pricey. Since car insurance providers are looking to profit from their services, they’ll try to find ways to make more money off you.
As a result, you may find yourself paying premiums that are a bit higher than you think they should be. But don’t worry: There are numerous things you can do to lower your premiums and make your car insurance coverage more affordable.

Negotiate or Change Providers

Just like with your cable bill, your auto insurance bill will slowly get larger over time, even if you don’t increase your coverage. This is partially because auto insurance providers offer low rates to new customers to get their business, and partially because they raise rates if they don’t think you’ll leave.
Most people don’t do anything about this, but you can! Contact your auto insurance provider and try to negotiate a better price. Then shop around and see what another provider will give you as a new customer (you can even use that quote as leverage with your current provider). Simply by changing providers or negotiating every few years, you can keep your premiums low.

Drive Safely

Most auto insurance companies offer lower prices to safe drivers. This means that the longer you go between accidents and traffic violations, the lower your prices will get. When in doubt, contact your auto insurance provider and ask if they offer such incentives.

Raise Your Deductible

Deductibles are directly linked to premiums. If you want to lower your premium, raising your deductible will do so. Of course, low deductibles serve an important purpose, so don’t employ this strategy unless you are able to save the money required to pay your deductible.
Raising your deductible can save you so much money on premiums that you’ll likely still spend less money annually, even if you hit your deductible during the year.

Check for Discounts

Most auto insurance companies offer some discounts, though you sometimes have to ask about them. There are numerous discounts available from home and car insurance bundling, to family plans, to lower rates for people who drive a limited number of miles.

Purchase a More Affordably Insured Vehicle

Different vehicles have different insurance costs. Typically, cars that drive fast or cost a lot of money to repair and replace are the most expensive ones to insure. If you want to keep your premiums down, trading your sports car for a SUV with a top safety rating can really help you out.

Look into Classes

Many insurance companies will give you a discount if you take a defensive driving course or a driving safety class. Furthermore, if you’ve recently received a speeding ticket, attending traffic school can help drop the price of your premiums.

Lower Your Coverage

Simply put, the better your coverage, the higher your premiums. If you opt for liability insurance instead of collision coverage, or collision instead of comprehensive coverage, then your premiums will drop by a large amount. Of course, there is a risk in reducing your coverage, so make sure that this is a smart move for you before you take this step.

Skip the Payment Plans

Payment plans can help a lot of people by spreading out the money that needs to be spent on insurance. The downside is, most auto insurance companies charge more money if you pay in installments than if you pay for your coverage all at once. If you can afford to make a lump-sum payment, then do so.
Having car insurance is important, but rates often increase over time and it’s common to overpay. None of these tips will make your car insurance free, but they can make it more affordable so that you can get the coverage you need for a reasonable price.