In every state, except New Hampshire, it is required by law to carry auto insurance. As many drivers search for insurance, they seek the best bang for their buck policy. After the initial purchase of insurance, the client is usually satisfied and retains the insurer for many years. This practice is usually not recommended to keep your promotions low and to secure the best price around. Here are some ways to lower the cost of car insurance:
- Stay Accident Free – Being involved in auto accidents will raise your car insurance rates. Staying accident free (usually an insurance company will require a set timeline for this, 3 or 5 years) will help lower your car insurance premium.
- Type Of Car You Drive – Sports or imported cars bring in a high price ticket along with high insurance premiums. Many insurance companies give discounts to compact or utility cars as they are much cheaper to fix.
- Additional Features Included In Vehicles – Discounts are given to additional air bags, automatic seat belts, anti-lock brakes or other safety features that are installed in your vehicle. The client should check with their agent about any discounts on premiums related to safety features.
- Credit Score – A better credit score for clients will generally mean a better rate on insurance. If your credit was bad during the time you first signed up with your insurance company, another 6-8 months of good credit history may raise your score enough to get a discount.
- Discounts For Employees – Sometimes a corporation will partner up with an insurance company and offer discounts. A client should check with their employee and see what benefits (if any) they have to offer.
- Deductible Increase – By increasing your deductible, the premium rates will drop. The only downfall here is that a client must keep a set amount saved in an account just in case an accident does happen.
- Insuring Multiple Policies With The Same Company – By combining your car insurance with your homeowners, life insurance and other policies, insurance companies will give a multiple policy discount.
- New Insurer – At times, if you switch insurance companies, they will offer you a discount to enroll with their services.
- Age – Getting older is not always bad! When you get older, insurance premiums will decrease as well (as long as there is not any claims, accidents, violations, etc.). Some of these age plateaus are at 25, 55, 65, etc.
- Alarm / Security System – Cars equipped with an alarm system and GPS are eligible for a discount. A client should check with their agent and make sure they are receiving the proper discount.
Many people that shop for car insurance, will find the lowest priced insurer then retain them for years, not knowing about additional discounts that they could be eligible for. Always keep close tabs on your insurance and speak with your agent about any additional discounts that you can qualify for.