How to Lower Your Car Insurance Premium?

If you’re not using your vehicle as much in 2021, pick up the phone and notify your insurance agent. You might be able to get your payment reduced immediately. 

Your car age, model make, and mileage are just some of the factors in how much your vehicle insurance costs, and since driving has massively dropped since the dawn of the pandemic, you could be overpaying your auto insurance premium, as insurance experts say. 

What’s the point of paying for an annual mileage of 12,000 if this year it’s only going to be 8,000? Make sure you make them know you’re driving less so they can reduce your premiums. 

By Comparing Insurance Providers 

Rates change depending on the insurance provider. Experts recommend that you receive three price quotes at a minimum. Most insurers will offer quotes through their website or over the phone. Depending on the state in which you’re located, you can receive from the state’s insurance department prices for some major companies in your location. 

Some companies sell insurance through company agents, while many opt for independent agents that provide quotes from several companies. Other insurance providers will only give quotas directly, usually over the phone or online. 

By Choosing Vehicles that Cheap to Insure

When shopping for your next vehicle, whether it is used or new, compare auto insurance rates for the vehicles you are looking at. As we’ve previously mentioned, the age, model, or make of your car can determine the insurance cost, especially if you purchase full-coverage insurance. For instance, expensive sports cars, roadsters and luxury cars normally cost more to insure than safer SUVs and mini-vans.

A vehicle that includes safety features like airbags, anti-lock brakes, anti-theft systems, and engine cut-off can also reduce your insurance premiums. Reason: Vehicles with in-depth security features are less likely to be vandalized or stolen, while the safety features of your vehicle reduce the potential of being injured or being in an accident.

By Improving Your Credit Score

Like it or not, your credit score can make or break your auto insurance cost. For one, a good credit score can significantly reduce your insurance cost. Insurers prefer drivers with a good credit history as they’re less likely to file claims and thus cost them less money to insure.

There are, however, several ways in which you can improve your credit score. To do that, make sure you pay your bill on time, pay off any unsettled debt that crowds your credit history and ensure you remove any credit hits or errors. What’s more, checking your credit history regularly to ensure that it is on point can help you keep lower rates over time.  

By Avoiding Accidents and Violations

Moving violations and at-fault accidents can also hike your insurance premiums. Some states offer reeducation programs for drivers who have received driving tickets.

If you choose to take those classes, either in-person or online, those violations may be either removed or reduced from your driving record. While many drivers don’t get really well with the idea, they can save hundreds of dollars by staying clear of accidents and tickets entirely.

Written by Callum Jackson