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5 Secrets on How to Lower Your Car Insurance Premiums

lower car insurance premiums

Today, it is very common to find people complaining about how car insurance is such a rip off or perhaps how service fees and car insurance premiums have become expensive. Well, did you know that the latest study by USAA indicates that the average cost to drive for an American is about $9,122? It is indeed quite an amazing figure and people are really complaining about it. The numbers are insane, but this is not enough reason to complain about it.

In fact, driving your own car has never been expensive and it will not start now if you plan right. By planning I mean having an appropriate policy that can help you save a lot of money in case of an accident. Don’t fall into the trap of getting a bare-bone policy that will subject you to hectic financial risks. To help you through, we have come up with a perfect guide to help you kick things off and lower your insurance premiums.

 

1. Compare the car insurance costs

Buying a new car is one thing but getting a favorable car insurance cover is another new chapter that you need to understand. When you decide to buy a new car, check the total cost of the insurance policy. Normally, the premium will be based on several factors including the make/model of the car, its safety record, cost of repair and possibility of theft.

With these factors in mind, you could definitely net a windfall in savings when it comes to paying your premium.

 

2. Drive less and reduce your annual mileage/coverage

Other than the basics requirements of having a car and purchasing a favorable insurance policy, there are other important things that will make insurance companies throw cash to you with promising services. Driving less is in this category.

The main factor they are concerned about is how often you actually drive. The longer you are on the road driving without incidents of accidents, the lower your premium rates will be. However, if you spend a lot time driving for longer distances, there is a higher likelihood that you may cause an accident irrespective of how safe you are driving. To be on the safe side, reduce the numbers of time you have to drive and maybe use public means or ride a bike.

 

3. Choose policies that are high on deductibles

The deductible is the amount you pay before the insurance company benefits are applied. The idea is that the higher the deductibles, the lower the premium will be. In most cases, deductibles averages $250 to $1000 depending on the type of policy.

Get enough information on how your premium rates may be affected if you raise your deductibles. In some cases, it may result in a better annual premium while in others, the savings may be quite minimal.

 

4. Maintain a good credit score

Most people do not know that an insurance company can easily predict the probability that you are going to cause an accident by simply analyzing your credit score.

In some states for example, your credit rating determines the insurance cost you are going to pay for your car. Well, good driving habits are the best option to ensure you keep the insurance costs on the lower side but working on your credit score by paying your bills constantly and using the credit in the best way possible can help you save some money when it comes to paying your monthly or annual premium.

 

5. Take advantage of other discounts available

Every state has a different set of discounts available for car owners. Some of the most common one include Multiple Policies, Good Student, EFT, Safe Driver, Multiple Vehicles and Paid in Full. Ensure your insurance agent takes you through the packages with details on the available discounts. At the end of the day, you will come up with the best policy with realistic discounts.


When it comes to car insurance, price is not the only aspect to take into account. It is advisable to have all the information and coverage especially on premiums so that you are not surprised in case of an accident. These tips will set the ball rolling in the right direction towards getting the lowest insurance premiums.

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