Many factors combine to affect your car insurance rates. Car insurance companies will look at your driving record, age, gender, location, vehicle information, and more. Some of these factors are well within your control, which gives you the power to make positive changes that help lower your car insurance premiums.
Keep reading below to learn how to lower car insurance rates with some easy steps like bundling policies, taking advantage of discounts, and comparing quotes from multiple companies with EverQuote.
How To Lower Car Insurance by Shopping Around for the Best Quotes
Every insurance company has a different way of calculating auto insurance costs. You can easily pay hundreds more with one company than another, simply because one company weighs factors differently. Sometimes, it might even depend on factors that you can’t control, such as the provider’s business expenses and base service prices.
You want to shop around for the best rate. But it's too much work to enter your information with different auto insurers until you find the one with the cheapest rates. That’s why tools like EverQuote exist to make the process easier. Our online comparison tool lets you enter your information once and get quotes from multiple insurance providers.
All you need to do is enter some basic information like your age, contact information, driving history, and vehicle information. Then, you’ll get a variety of rates for the types of insurance you need, all in one place.
Save on Car Insurance by Bundling Policies
If you need to buy different types of insurance, you may be able to find an insurance company that provides all of them. For example, you might need car insurance and renters insurance. Having one insurer cover multiple policies is known as bundling. Bundling discounts can be some of the best tools for how to lower car insurance rates.
Many auto insurance companies provide bundling discounts, which means you’ll save on both insurance policies. Similarly, you might also qualify for multi-car discounts if you need to purchase a car insurance policy for more than one vehicle. Discounts may be reflected on your insurance statements as a dollar amount or percentage taken off your rates.
Lower Your Insurance Premiums by Increasing Deductibles
Your auto insurance premiums are the payments you make each month (or sometimes every six months to a year, depending on how you choose to pay for your policy).
Your deductible is the amount you have to pay out of pocket if you file a claim for the insurance company to provide coverage. Deductibles are typically included with uninsured/underinsured motorist coverage, personal injury protection (PIP), collision insurance, and comprehensive coverage.
Most insurance providers have a minimum deductible for your policy. However, you may choose to increase this deductible. While this means you would have to pay more out of pocket when you file a claim, it can also help to bring down your premiums. If you’re wondering how to lower your car insurance costs, this is an easy strategy that might be helpful for those who can afford more out-of-pocket expenses in the event of an accident.
Take Advantage of Discounts To Lower Car Insurance
Most companies will provide a list of car insurance discounts that you might qualify for to save on your auto insurance policy. Some of the most popular include:
- Safe driver discount: If you go a certain amount of time without any accidents or driving violations, you might qualify for a safe driver discount.
- Student discount: Students in high school and college who maintain a specific grade point average can receive a discount.
- Military discount: Current or former members of the military may receive a discount.
- Low-mileage discount: If you drive less than a specific number of miles, you might receive a discount since you’re less likely to be involved in an accident.
- Loyalty discount: Renewing your policy might earn you an additional discount.
- Paperless discount: You can receive a discount if you choose to receive electronic documents and notices.
- Autopay discount: If you set up automatic payments with a debit card, credit card, or bank account, you can save money on your car insurance.
If you’re looking for some easy ways to get cheaper car insurance, discounts can save you a substantial amount, especially if you qualify for more than one.
How Improving Your Credit Score Lowers Car Insurance
Drivers with poor credit are likely to pay higher rates than those with good credit. However, each insurance company has its own standards for what constitutes a good credit score.
While car insurance companies don’t necessarily base rates on your creditworthiness, your creditworthiness does indicate to them how much risk you present. Simply put, someone with a lower credit score is considered to be more risky. Insurance companies determine your risk level based on factors such as your payment history, how much debt you have, the length of your credit history, and what types of credit are on your report.
Learning how to get lower car insurance by raising your credit score can take some time. However, it’s well worth it for both your insurance rates and your general financial situation. Ensure that you’re making debt payments on time and that you’re not consistently maxing out your credit cards. You can also check your credit report to confirm that all the information is accurate.
Keep a Clean Driving Record To Maintain Low Insurance Premiums
Your driving record is a primary factor used to determine your car insurance rates. Insurance companies look at whether you’ve been in accidents, your record of driving violations and tickets, and how many claims you’ve filed with insurance companies in the past.
One of the best ways to maintain a clean driving record is to be more conscious of your daily driving habits. Make sure that you’re following the speed limit, staying aware of your surroundings, and making appropriate stops. You can use apps like EverDrive to track your driving with your mobile phone and see which areas need improvement.
Shop Around for the Best Car Insurance Quotes
While there are a variety of ways to lower your car insurance rates, it's always a good idea to compare insurance quotes from multiple companies. To save time, use an online comparison tool like EverQuote. Enter your ZIP code to get free auto insurance quotes now.