How to Get Lower Car Insurance

While Uber and other ride-sharing services have become increasingly popular over the past few years, most people still own and drive cars. Even if you don’t use your vehicle too much, you still need to keep it insured. That’s because it’s the law in almost every state. You have control over who you insure your car with, what type of coverage you get, and how much you pay.

There are proven strategies to get lower car insurance that can save you some serious money. Here are a few tips that you can use to get cheaper rates.

1. Keep your Credit Score above 650
Having good credit is essential to getting cheap car insurance. Drivers with terrible credit can pay about double the rates of those with good credit. Insurers are placing more emphasis on credit today than ever before. If your score is low, take action to raise it as soon as possible.

2. Maintain a Good Driving Record
One of the most critical metrics insurers look at when determining rates is a person driving record. While having just one ticket on file will not cause a significant rate increase, multiple moving violations and accidents will. Also, don’t ever get behind the wheel of an automobile intoxicated. This will cause your premiums to more than double. Many companies refuse to insure drivers with DUI convictions on their records. Driving safely will help keep you alive and lower your auto insurance bill.

3. Get Higher Deductibles
One of the easiest ways to lower auto insurance premiums is to raise your deductible. This can save you 15% or more. A deductible is an amount you pay before your policy starts paying out for a claim. The higher you raise it, the more you can save. By increasing a deductible from $250 to $1,000 on collision and comprehensive coverage, you could save as much as 25%. This adds up to hundreds per year. Before you do this, make sure you save the entire deductible amount in case you get into an accident and file a claim.

4. Consider Reducing Coverage on Older Vehicles
If your car is more than eight years old, chances are it has depreciated more than 65% or about two-thirds of its value. Covering an old automobile with premium collision and comprehensive insurance might not make financial sense.

A rule of thumb is this if your automobile’s value is less than ten times your premium, then keeping comprehensive insurance might not be financially savvy. Another move is to review your policy before it expires to see what coverage you need to reduce or add.

5. Bundle your Home and Auto Coverage
Insurers want as much of your business as possible. As a homeowner, you can take advantage of a discount worth 5% or more by bundling your home and car insurance coverage. This is known as a multi-policy discount. You can qualify for even more significant discounts if you bundle two or more cars with the same insurer and your homeowner’s insurance. Some carriers offer greater discounts for bundling, which is why it’s so important to shop around before you buy a policy.

6. Save with Group Insurance
Some providers give significant discounts to drivers who buy insurance through a group employee plan. This is where the employer negotiates lower employee rates, often as a work incentive. There are also group auto insurance plans through alumni and business groups. If you work at a large company, chances are they have this option available.

7. Low Mileage Discounts
If you drive fewer than 800 miles per month, you can qualify for a low mileage discount that can save you 10% or more. If you are recently retired and no longer commute or drive much, make sure you get this discount when you renew your policy.

There are also specialty insurers like Metromile that base their rates on the actual number of miles driven each month. Motorists who only drive 10-15 miles per day can save hundreds per year with pay-per-mile auto insurance.

8. Get all the Discounts you Can
Insurers offer more discounts than ever before. Chances are you will qualify for one or more. Some of the most popular include:

• Safe Driver
• Military or Veteran
• Good Student
• Senior Citizen
• Auto-theft Device
• Drivers Education Course 
• Bundling Auto and Home 

Shop Online for Cheap Direct Rates

Now that you know how to get lower car insurance, it’s time to compare rates. There’s no better place to shop for auto insurance than on the web. Direct insurers have some of the best auto deals anywhere. They offer lower rates because they save money selling policies online. The savings are then passed down to you, the consumer.

Get at least eight online quotes. This way, you have a large enough rate sample to compare. Also, don’t overlook small, regional insurers. They are not always on TV but often have lower rates than large national companies. Get started now by entering your zip code and lowering your insurance cost.