Auto Insurance Coverage Rates: How Low Can They Go?

So you’ve got your insurance policy all lined up but you want to know what you can do as a driver to keep your premiums as low as possible. There are all sorts of ways you can make yourself a low risk to your insurance company and thus benefit from low monthly rates and low deductibles payments. But what are they?

Fortunately, by using simple common sense, you can answer this question yourself. But if you want to make the best out of your insurance policy, you ought to know what you can do specifically.

1. Drive Safely

The most obvious tip for saving money on your car insurance is to simply drive safely. If you can prove to your insurance company that you are a low-risk customer, your rates will gradually drop. The longer you stay out of an accident, the cheaper your policy will be!

2. Drop the Extras

Many people get fooled into paying for full, comprehensive auto insurance coverage and that can get very expensive. They become convinced, perhaps by an insurance agent, that they need coverage for everything from hail to theft to vandalism. But the truth is, if your car is inexpensive, used, or old, you may benefit from a more affordable, basic policy.

3. Don’t Fear the High Deductible

Another way that people are enticed into spending too much money for their car insurance is that they are attracted to policies that have low deductibles. However, all insurance buyers should know that a high deductible is okay! In fact, it may even be preferable. A policy with a high deductible probably has lower monthly rates. A policy with a low deductible, by contrast, tends to have higher rates.

4. Know Your Discounts

This tip ties into #1, in that the longer you go without getting into an accident, the lower risk you will be to your insurance company. Thus, you can get discounts for being a safe driver! In fact, do you have airbags, anti-lock brakes, anti-theft locks and other nifty features like this? All of these things can mean great discounts for you on your policy. If you’re a student who gets good grades or if you own more than one car, you can get even more discounts. Depending on your insurance company, you may be able to take advantage of all kinds of cool discounts. Just make sure you know what makes you a low-risk customer so you can learn how to pay less for your insurance.

5. Think Outside the Car

Did you know that your insurance rates are somewhat based on elements beyond your control? Maybe you have a squeaky clean driving record and yet you still pay a whole lot for car insurance. How could this happen? A reason this may be is because you live in a big city where there is a lot of traffic. Typically, drivers who live in smaller, rural areas pay less for their car insurance. So keep these things in mind as you shop for a policy and a home.

6. Don’t Buy Just Any Car

Instead of getting that high-profile car you’ve been eyeing, consider the financial consequences first. If that fancy car costs a lot to repair or is commonly stolen, then your insurance is going to cost more as a result.