Does it seem like your car insurance gets higher and higher? Instead of continuing to pay the high price without question, work to lower your costs. Whether you stop paying for full coverage or work to improve your credit score, you can use these tricks to lower your car insurance.
Stop Paying for Full Coverage
If your car is paid off (and you can afford to buy another car), consider dropping your full coverage insurance. You especially want to do this if you have an older car. Dropping to your full coverage insurance can save you a lot of money. In fact, it may drop your insurance by 50% or more.
Be sure to ask your agent to run a quote both with and without collision coverage to see if the cost savings is worth the additional risk.
Be Careful With Which Car You Buy
Did you know that many car companies penalize those who drive less expensive cars? It's unfair, but often true. Plus, some cars are more expensive to repair than others and have higher premiums because of this. You want to carefully research how much a car will cost to insurance before you make a purchase.
Bundle Your Insurance
Another great way to save is to bundle your car insurance with your home insurance. Many companies are willing to offer you a discount when you bundle. Check around and see which company is willing to offer the best deal. In the process, you may even save money on your home insurance.
Improve Your Credit Score
Your credit score can have a big impact on the amount you pay for car insurance. You want to work to improve your credit score as much as possible. Lower your credit card balances, increase your debt to income ratio, etc. Doing this before you research the cost through other companies will ensure you're offered the best price.
Maintain a Good Driving Record
If you have a perfect driving record, mention this when getting quotes from other companies. You can also mention this when asking for a lower price from your current provider. The longer you can maintain a good driving record, the better price you can get.
Increase Your Deductible
Last, but not least, ask to increase the deductible on your insurance if you have enough in your emergency fund to cover it. Do be aware that if you have an accident, you will have to pay more out of pocket. If you're in a position where you rarely drive your car though, there's less likely a chance that you'll have an accident.
You don't have to pay a lot of money for insurance. There are so many easy things you can do to lower your costs. Whether you drop your full coverage or increase your deductible, you can save a lot of money.