How to Lower Your Coverage Costs

Is the rising cost of living cramping your style and scaring you? You’ll want to cut unnecessary costs wherever you can — and looking at your car insurance cost is an important step.

If you’re an experienced driver, you probably know a lot of the tried-and-tested ways to reduce your car insurance cost already, and you may already have implemented them. You may still be missing out on some important strategies, though! Check this list to see how else you might be able to lower your coverage costs!

1. Shop Around for the Best Car Insurance Rates

There’s no need to stay “loyal” to your current insurer if you can get better rates elsewhere. You might be surprised how much you can save by choosing a different insurance company — while retaining the same coverage!

Start by following the old but wise advice to get quotes from at least three different insurers, and continue requesting quotes if you think you can still get a better deal.

2. Review (and Increase) Your Deductible

Increasing your deductible is one of the best ways to save on your car insurance coverage — to the tune of 15 to 30 percent! It isn’t the right step for every driver, but it’s a good idea to at least consider increasing your deductible if you’re trying to save on costs.

3. Take a Defensive Driving Safety Class

Defensive driving safety classes have numerous benefits, from increasing your skill and confidence on the road to lowering your risk of being in a car crash. Completing a defensive driving safety class can also slash your car insurance coverage cost because many insurance companies offer discounts if you do. That’s because you’re statistically less likely to file a claim if you are a skilled driver!

4. Consider Bundling Your Insurance Policies

Bundling your insurance policies is not always the best course of action, but it can sometimes lead to significant savings. Bundling home and car insurance is the most common example, but there are other ways to bundle your insurance coverage, too. In some cases, the discount can be as high as 25 percent!

Are you part of a multi-car household? “Bundling” your car insurance can also lead to savings. This bulk discount isn’t offered to just any group of drivers, however — you generally have to be related and live at the same address to benefit from a multi-car insurance discount. 

5. Look Around for Other Discounts

You may also be able to get a discount if you have a new vehicle, a green vehicle, or a vehicle equipped with the latest safety features. Good driver discounts are frequently available, as well. Consider the available discounts as you shop around for a new car insurance company!

6. Consider Replacing Your Car

If you’re already in the market for a new vehicle in the near future, consider insurance costs carefully as you narrow down your choices. Driving a new, safe vehicle with low repair costs will lead to a lower insurance premium. Choosing a hybrid or alternative fuel vehicle can also prove to be beneficial.

7. Work on Your Credit Rating

Boosting your credit rating is one of the best ways to reduce your car insurance costs. That’s because your odds of filing a claim go up in this case. By being financially responsible in other areas and getting your credit score up, you may also bring your car insurance rate down.

8. Pay Your Car Insurance Premium in Full

Many insurance companies are happy to give clients who pay their car insurance premium in full a discount. Consider taking this step if you’re able to. Paying your premium in one go also means you won’t have to worry about it for the rest of the year.