Did you know you can lower your car insurance cost?

When you’re driving around and going about your day, it’s nice to know that you’re covered by car insurance and don’t have to worry about it. After all, even if you are one of the best drivers out there and are cautious on the road, there is no guarantee that others will be as cautious as you are. Or that the weather conditions will leave your car unscratched.

The truth is that life is unpredictable, and to make sure that you have your car covered and you don’t have to shell out even more money from your own pocket, it’s good to have some sort of car insurance already set up. Be it just the basic liability insurance or the full auto coverage package, it’s the best practice to never lose sight of it and to make sure you always renew it.

However, the cost of insuring your car can sometimes be very steep. And while all car insurance costs are different from driver to driver, studies have shown that back in 2018, a normal person spent about $1,190 on insurance alone, and they only continued to rise from there. However, you do not have to regard your insurance renewal day as a sad one. There are ways in which you can lower your insurance costs, and some of them are actually pretty easy.

Here we have gathered some of the best ways in which you can lower your car insurance costs and presented them in an easy-to-understand way so you can start thinking about implementing them as soon as possible.

Let us know which one of them you are definitely going to use down below in the comments!

#1 Boost your credit ranking

One of the biggest things that counts toward how much you are going to pay for your car insurance is your driving record. After all, it is intuitive that people who have been getting into a lot of car accidents are going to have to pay more towards their car insurance as it is statistically more likely they will get into one as well and thus cost the company more money. However, what most people don’t know is that your credit score also contributes to how many premiums get added to your insurance.

This may be why your car insurance is still fairly pricey despite having a clean driving record, as the company is probably using scores that are based on credit. This is considered an issue in some statehouses, but most insurers that use this method do it because it will tell them more about the person paying the insurance: if you are responsible with your money in your daily life, you are apparently thought to have a lower chance of filing an insurance claim.

Whether this is true or not, it’s a good move to make sure your credit ranking is high in order to ensure that if this counts towards your insurance score, you will not end up with higher insurance!

#2 Car insurance is linked to your location

We doubt moving to another state is a decision you’re willing to make based on insurance rates. Yet, it is actually a true fact: some states have lower car insurance rates than others, and this is something you should look into if you plan to move.

Likewise, be it higher or lower, it is good to do some research into this aspect as well before you commit to moving cross-country, as you do not want to end up having a bad surprise and not having budgeted for this as well.

#3 Raise the number of your deductibles

You may have noticed that when you are selecting your car insurance, you are also choosing the deductible you will pay. These deductibles are actually what you will pay out of pocket before the insurance covers everything else if your car gets involved in an accident, some sort of burglary, or anything else that could damage your car. Depending on the policy of the insurance firm you are working with, the sum of your deductible can be anything between $250 and $1,000.

The catch here is that if you have the lowest deductible, then your annual premium is going to be higher. A great trade you can make here is to raise the deductible and thus lower your premium. You should discuss this with your agent before you commit to anything and see how this deductible premium situation works with their firm. This is a good way to make the annual premium lower by a few percentage points and not have to pay so much, or it could be that the savings are minimal.

But until you ask, you will not know, so keep this in mind.

#4 Get a smaller vehicle

You may feel great having a big van or an SUV, but let’s be honest: getting insurance for a top-of-the-line vehicle that weighs several thousand pounds is going to be way more costly than insuring a smaller (yet just as safe) car. Not only that, but chances are that if you are approaching your golden years and you don’t live on a ranch, you have no need for such a big car.

A way to make sure your car insurance isn’t as high as it is now is to switch to a smaller vehicle. What’s more, if you opt for a hybrid or alternative-fueled car, you may be eligible for further discounts! You can both help the environment and save some money! Make sure to look into how rates change based on the type of vehicle you have before you commit to the change!

#5 Keep an eye out on the road

Yes, it sounds cheesy, but this is one of the best ways. You have to be a safe driver, and this means being very careful when you are on the road. And while for some, this goes without saying, a lot of us could be more careful than we already are, especially in today’s age when there are so many things that can distract you right inside your car!

The more careful you are when on the road, the lower your chances of being involved in an accident, as well as any other tiny road violations you may make by accident. Doing so will also decrease the point you may receive and thus lower your insurance rates!

Depending on your driving record and your insurance company, you may end up getting between a 10% and 23% discount on your insurance premium!

#6 Review Your Coverage

It may be a dangerous slippery slope, but at the same time, reviewing and dropping some coverage from your insurance may be the best choice for you. This depends on how old your car is. Truthfully, none of us can predict if we are going to be caught in an accident, and even if we end up fine after one, the car may not be looking as good as we are. Furthermore, if your car is old and on its last legs, it may be best to forego comprehensive coverage in favor of just collision coverage.

Think of it like this: If your car is old and it’s worth about $1,000, but you get into an accident, and the insurance company totals it, paying that $500 per year for collision coverage is just wasting money. Do your calculations, take into consideration cost and your driving record (as well as any other factors at play), drop the coverages that do not make sense in your case, and pay less on your car insurance.

#7 Sign up for a defensive driving course

You may be one of the lucky ones that has an insurance company that will give you a pretty nice discount on your car insurance if you sign up for a state-approved defensive driving course. Not only will this course deduct some of the points that you may have accumulated over the years, even for small violations or honest mistakes, but you will also get a better deal on your car insurance premium! And you can take a variety of courses too, including accident prevention ones.

Before you commit to any of these courses, make sure your insurance company or the agent you are working with will actually provide such a discount to you! After all, you want the effort and money you will be paying for this course to translate into big car insurance savings! What’s more, make sure your course is accredited and that the state you live in also approves of them (you can check by the state on GEICO’s website).

A lot of these discounts only apply to drivers 50 and older, and they are a great way to lower your car insurance rate as we reach our golden years!

#8 Make use of mass transit

When you go to sign up for car insurance, you will be given a questionnaire by the company you chose. While it may not seem that important, there is a question there that actually counts a lot toward how much you are going to be paying on your car insurance premium. That’s the number of miles you travel with your insured car per year.

If you are one of the people who use the car for commuting, there is a high chance you will be paying more in insurance premiums than someone who is not doing the same thing. We are talking about commutes that take you, on average, over two hours every day. Generally speaking, if you live in a big city, you have a high chance of decreasing the amount you will be paying on your car insurance if you lower your mileage by taking mass transit from time to time.

It may not seem like you will be saving much if you end up taking the bus or subway two times a week, but in the long run, it can save you a lot. In order to ensure that your efforts to reduce your annual mileage are not wasted, inquire with your agent or car insurance company about their mileage threshold policy.

And if you’re looking for more ways in which you become an insurance genius, start by checking if you know the basics!