Tips for Lowering My Insurance Premiums

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Tips for Lowering My Insurance Premiums

If you're tired of paying too much for auto insurance, then you should be aware that you have options. Of course, the best way to keep your premiums low is to have a good driving record. That's not your only option though. Prices for auto insurance are not standardized so you may be able to use a few different options to keep your costs manageable. These are just a few of the ways to keep costs manageable.

Shop Around

Not every insurance charges the same. You may want to shop rates from a few different companies. Usually having at least three different price quotes is a good option. You should only choose reputable insurers and ones that offer adequate coverage. It's also a good idea to not shop by price alone. Ask friends and relatives if they have any recommendations. They may know companies that have good coverage for a reasonable option. Contact your state insurance department for more details as well.

Consider a Higher Deductible

The deductible is what you're going to pay before your insurance kicks in. By choosing a policy with a higher deductible, you may be able to lower your costs significantly. For example, if you can change you deductible from $200 to $500, then you may be able to reduce your comprehensive cost by up to 15% or even higher. Remember that although this is a way to save money, you should only choose a deductible that you could plan to cover if you did have an accident.

Bundle Insurance Coverage

Most people have at least two types of insurance and insurers are generally willing to give you a better deal if you buy at least two types of insurance from them. You may also get a discount if you have more than one vehicle policy with the same company. They may even be willing to lower your rates if you're a valued long-term customer. It still makes sense to shop around so even if you're going to have multiple policies, check your rates.

Look at Low Mileage Discounts

If you're not driving frequently or only drive a short distance, then you may be eligible for discounts based on your current number of miles driven per year. As you drive more, your overall risk of having a claim goes up. Low mileage discounts may also be available for people who carpool to work so ask about this if relevant.

Seek Out Additional Discounts

Each insurance company may also offer other discounts simply based on factors specific to their company. Some may offer a safe-driving or accident-free discount while others may have one as your car ages. When you comparison shop, ask about additional discounts such as having AAA or any other factors.

Regardless of which policy and auto insurance company you choose, you should be aware that there are options when it comes to how much you pay. Certainly rates can be higher for some people or in some areas but you should be able to lower your costs with a few considerations.