How can you lower your car insurance?
Car insurance can be expensive, with the average cost being upwards of $1500 per year. This can sometimes be due to factors in your life that affect insurance rates. Factors like age, gender, your home location, or what you do for work can not typically be changed, but you can attempt to lower your car insurance with these tips.
Some insurance companies charge different rates for the same coverage. Some companies also treat age, credit score, and other factors differently. Find a company that values your business.
Actively Look For Discounts
Every insurer will give you discounts based on your car, policy choices, and even your driving history. You may even be given discounts for asking for paperless statements, or paying your policy upfront. Just ask.
Get a Higher Deductible
The higher your deductible is, the less you will pay for a premium. This means if you pay less per month, you may pay more in the event of an accident. This is a choice you will need to make for yourself.
Reduce your Coverage
This is not always recommended, but you can choose to lower policy limits. For example, if you have an older car you may not need to have collision coverage.
Reduce How Much You Drive
You might not realize this, but insurers will increase your premium if you drive more. Consider sharing a car to go to work, ride your bike, or use local transport to limit how much you drive your car.
Buy a Cheaper Car to Insure
One factor in how much you pay for car insurance is the cost of your car. For example, the overall value, along with the body type, make, and age matter. If a car is cheaper, then it is considered less difficult to replace in an accident.
Improve Your Credit History
Credit score plays a large role in your car insurance premium. If you have poor or no credit, you may pay up to 70% more for car insurance. Building credit will help you with other things in the long run as well.
Although moving your home to have lower car insurance is a bit dramatic, it will affect your rates. For example, if you live in a city with a high crime rate you will pay more, versus a less populated area with a lower chance of break-ins.
Want to get advice on your car insurance plan and rate, contact our Denver Insurance Brokers.