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8 Tips to Lower Your Car Insurance

Created Date
May 6, 2020

8 Tips and Tactics to Lower Car Insurance During COVID-19

If you drive a car, you need automobile insurance, but how do you afford the premiums and still put gas in the tank? In many cases, the cost of car insurance is the largest monthly expense drivers face. In other cases, it is second only to the monthly car payment. With those high costs, it is no wonder so many drivers feel trapped – stuck between the large premiums they have to pay and the dangers of driving uninsured.

The good news is you do not have to make that difficult choice – or open yourself up to prosecution for driving without sufficient coverage. Just use these 8 tips to lower the high cost of car insurance and stay safer on the road.

1. Buying a Used Vehicle

If you want to save on your car insurance, buy a cheaper car. In fact, used vehicles generally get you a low monthly premium for insurance simply because the car itself isn’t worth much. You can also go with a basic insurance package for a used car instead of one with all the bells and whistles.

2. Buy a Conventional Family Car

Luxury models and sports cars come with expensive insurance premiums, so go with a conventional family car if you want to save money. Car insurers know from their statistics that family drivers tend to be cautious at the wheel.

A mini-van comes with a more affordable insurance rate than a corvette. Its simple mathematics. Expensive cars cost more to repair, and sometimes, they cause more damage than their low-end counterparts.

3. Make Sure You Shop Around

There are as many auto insurance quotes as there are insurance companies. Take your time to compare offers from at least 3 insurers, as each company uses a different model for calculating premiums and coverage.

You should also consider looking for quotes online (from the same company) as opposed to in person or via the phone. Many online quotes are more competitively priced to attract more customers.

4. Raise Your Deductible

No matter what kind of vehicle you drive or how much coverage you need, premiums and deductibles move in opposite directions. If you want a sure way to lower your car insurance premiums, just raise your deductible. This is a great option due to Coronavirus allowing you to come across even more affordable rates.

Think about how much you can afford to pay out of pocket in the event of a crash, then stash that money away in a safe place like a savings account or money market fund. You can use the premium savings to pay yourself back, saving lots of money in the process.

5. Fix Your Credit Score

Like it or not, your credit score is likely to affect your car insurance premiums. Your credit score is one of a number of factors insurers use when determining rates, and a poor credit profile could cause your premiums to skyrocket.

If you know your credit score needs some work, do what you can to raise the number. From paying your bills on time to reducing the balances on your credit cards, these practical steps can raise your score and keep your premiums low.

If you do not know your credit score, now is the time to find out. There are numerous ways to access your credit score online, many of them completely free of charge. In addition, many credit card issuers are now offering free credit scores on their statements, so there is no reason not to know.

6. Bundle Your Coverage

Keeping your homeowners and automobile insurance with one company could lower the cost of both types of coverage. Bundling coverage is one of the best ways to save money without sacrificing the protection you need.

7. Opt in for E-Billing and Discount Options

Now more than ever, it is important to ask what your discount options are. Don’t be afraid to ask for discounts or ask for what help your insurance can provide. During the COVID-19 outbreak, insurance companies are committed to working with policy holders. Some of the discounts might include, multi-car discounts, safe driver discount, new car discount. Of course, there are more that you might qualify for.

Also, asking directly where you can save can lead to unknown discount options. For example, signing up to receive your bills and all related paperwork online can save you a small percentage of your premium. Likewise, signing up for automatic payment also leads to a discounted rate. Not all auto insurers offer these discounts, so be sure to ask first.

During COVID-19, it has been common for insurance companies to waive late fees, extend delivery coverage and work with policy owners to make payment plans. Don’t be afraid to ask for the discounts you are entitled to!

8. Lump Sum Payment

The amount of deductable you agree to pay is the minimum amount of money you will be required to contribute towards an insurance payout if you make a claim. If you agree to a higher deductable, your monthly or yearly premium will decrease. Of course, if you do need to make a claim, you will have to pay more, so you need to decide which route you personally want to take.

If your financial circumstances make it unlikely that you will be able to afford a large lump sum in the event of a claim, it may be more prudent to negotiate a lower deductable. However, if you’re confident you could comfortably afford the excess should the need for it arises, it may be worth agreeing to a higher amount in return for a lower overall rate.

Summing Up

If you drive a car, you need sufficient insurance protection in place, but you do not have to overpay for that coverage. With a few simple changes and some careful planning, you can slash the high cost of your car insurance premiums without sacrificing the protection you need. During these uncertain times it is ok to ask for help and that includes paying the right price for your auto insurance. Request a quote for auto insurance using Find Quality Insurance’s easy click-based form here:

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