Every motorist needs car insurance, but not every motorist is paying the best possible rate for this mandatory product. Knowing the basic ins-and-outs of the car insurance game makes getting the best deal easier than you think.
Drivers, buckle your seat belts, and start your engines. Here are 6 tips to lower your car insurance rate:
- Higher Deductible, Lower Premium
- Make And Model Matters
- Consider Less Coverage On Older Cars
- Good Credit, Better Rate
- Bundle, Bundle, Bundle
- Ask For More Discounts
1. Higher Deductible, Lower Premium
It’s a simple fact that a higher deductible results in a lower monthly premium for your car insurance. Increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by up to 30%. Going to a $1,000 deductible can save you 40% or more. Ask your insurance provider about available options for higher deductibles, but be sure that you have the full deductible amount stashed away in savings.
2. Make And Model Matters
Before you buy a new or used car, check the insurance costs for its make and model. Safe and moderately priced vehicles are usually cheaper to insure than flashy and expensive cars. Insurance premiums are based in part on:
- car price
- repair cost
- overall safety record
- probability of theft
Many insurers offer discounts for features that reduce the risk of injuries or theft. Before you buy, you can view vehicles with the highest safety and crash protection from the Insurance Institute for Highway Safety (www.iihs.org).
3. Consider Less Coverage On Older Cars
If your car is worth less than ten times the premium, you might consider dropping costly collision or comprehensive coverage from your policy. To find out what your older car is worth, talk to an auto dealer or bank, or check it’s Kelley Blue Book value (kbb.com).
4. Good Credit, Better Rate
Higher credit usually means a lower your premium. Many insurers use credit information to price auto policies because research shows that people with good credit file fewer claims. People with no credit pay on average 67% more for car insurance than people with excellent credit. Texas is one of the top states where credit affects car insurance rates the most. To maintain good credit, you should always pay your bills on time, keep your credit balances low, and don’t take out more credit than you need.
5. Bundle, Bundle, Bundle
Many insurers will discount your rates when you bundle your auto and home insurance together. You may also get a reduction if you have more than one vehicle insured with the same company. Check out Texan bundle rates here.
6. Ask For More Discounts
Depending on your area, some insurance companies offer several different kinds of discounts, for which you may be eligible, which can lower your monthly car insurance rate. Those discounts may include:
- Discount for group plans from their employers, through professional, business and alumni groups or from other associations.
- Long-time customer discount
- Antitheft devices discount
- College students away from home discount
- Defensive driving courses discount
- Drivers Ed courses discount
- Low annual mileage discount
- Multiple car discount
- No accidents in three years discount
- No moving violations in three years discount
- Student drivers with good grades discount
Be sure to reach out to our knowledgeable agents at Texan Insurance to discover all of the discounts that could be applied to your unique situation.
Car Insurance 101
As you’ve seen, several factors impact the rate that you pay for car insurance. Having a basic understanding of them can help simplify what can be a complicated process. Some of the most important factors include:
- Vehicle Size: Large vehicles tend to cost less to insure than small vehicles because they suffer less damage in auto accidents.
- Vehicle Performance: High-performance vehicles (like sports cars) tend to be driven more aggressively and statistically end up in more accidents. Thus, resulting in higher insurance costs.
- Vehicle Age and Value: Newer, more expensive cars tend to cost more to insure than their older, less expensive counterparts.
- Vehicle Features: Added safety features such as anti-lock brakes, anti-theft devices, and airbags can lower car insurance rates.
- Driver Profile: Drivers under the age of twenty-five are statistically more likely to be in accidents than older drivers, so their rates are typically higher. Additionally, male drivers under twenty-five tend to have higher insurance rates than females of the same age.
- Driver Record: Drivers with past claims are more likely to file future claims. Their insurance rates tend to skew higher than drivers with no claims. Additionally, drivers with moving violations or accidents will typically be charged higher rates.