There are many ways to lower you car insurance rate some a bit more challenging than others. The list below is by no means the only ways to lower your rates, but definitely reflects the most common methods to insure that you are obtaining the lowest car insurance rates online that are possible.
Protect your credit rating: Nowadays, insurance companies will compile an insurance score when calculating your insurance rates. This score is significantly impacted by your credit score. This results in the following formula- the lower your credit score the higher your insurance rates and of course a higher credit score will reflect a lower rate on your car insurance.
Shop Around: This seems simple, but in today’s world of instant gratification, consumers are sometimes quick to make decisions and fall for a company’s claim of offering you the highest rate. The best way to rate shop is to go online and visit one of those sites that will provide you with quotes from multiple insurance companies and even place them in a graph so you can do a full analysis yourself.
Change your cars drive status: What do I mean? When insurance companies pose the question how many miles do you drive to work and/or school- there is a purpose behind it. The further you drive the more chances you have to get into an accident. Considering that a lot of us are changing our modus operandi to and from work/school due to escalating gas prices(car pools, bikes, etc)-it behooves you – (and of course your premium rate) to inform your company of your change in weekly driving miles.
Before you purchase that new or even used car look into the insurance costs associated with that vehicle: Your car insurance rates are based on how much your vehicle costs, its safety features (anti-lock brakes, anti-theft devices), its theft record in your city, and even the parts (that revved up v8 engine might come with a higher insurance rate than the v6).
Get Married and/Older: Now this one of those things that just has to happen- but if you fall within the ” I just got married” or “I just got older” it is time to do some rate shopping. A lot of insurance companies offer multi-car discounts and without doubt your insurance rates will continue to drop over your lifetime. Apparently the older you are the more responsible you are.
Remain Loyal: If you have home owners or rental insurance consider getting your car insurance from the same company. Almost every insurance company will discount your insurance when you carry more than one policy with them
Change your occupation: Now depending on what you do for a living this might be impossible, however a recent study shows that people in more stressful occupations such as (lawyers, company executives, etc) tend to drive while on the phone, drive faster, and are more accident prone. Because of this they have proportionately higher rates than for instance- teachers.
Be a good student: Most insurance companies will discount your car insurance rates if you are in high school or college and you maintain “B” average or better.
Take defensive driving classes: Insurance companies look favorably on those who take the initiative on learning how to drive safer, and they will reward you with lower rates if you do so.
Increase your deductibles: The higher your deductible the lower your rates. Of course a high deductible is no fun if you get into an accident. Do a cost analysis. If your monthly premium on associated with your low deductible is considerably more than your monthly premium with a higher deductible you might be better off and actually save some money with the higher deductible and the lower rate.
Research other available discounts: Each auto insurance company will have its own set of discounts, depending on where you live and of course that particular insurance companies policies.