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How To Cut Your Car Insurance Costs

How To Cut Your Car Insurance Costs

by Must ReadsJanuary 25, 2015

Between the high price of gas and the overall cost of purchasing a car, running a vehicle has become a major expense for many families. Car insurance is one of the most important expenses involved when it comes to owning a car. Insurance is an absolute necessity that can’t be avoided, but there are ways to bring down the cost of your premiums without resigning yourself to public transport anytime soon.

Include Other Vehicles

If you have more the one vehicle parked at home, you could save money by insuring everything together under a group discount, rather than setting up separate insurance policies. Find out from your insurance provider whether your rates will go down if you cover more than one car and then compare the costs with other insurers. You may also receive a discount if you purchase home insurance or other forms of insurance from the provider at the same time, so compare costs before you sign anything.

Track Your Mileage

Try to give as accurate an answer as possible when you’re insurance provider asks how many miles your vehicle is getting through each year. If you’ve driven slightly less in the past year and have opted to walk, cycle or take the bus instead, make sure your new answer reflects this reduced mileage. If you’re not getting tons of use out of your car, your insurance premium should reflect the lower mileage with a lower cost.

Compare Costs

Many people get stuck with the same insurance company for years, choosing to stick with what they know rather than looking out for a better deal. You could be missing out on some major savings by showing your insurance provider too much loyalty. When the time comes to renew your auto insurance, shop around with multiple companies to make sure you’re getting the best possible rate.

One important thing to remember when comparing premium rates is that the coverage may not be identical between different providers. Make sure that you know exactly what level of coverage you need and then compare using similar policies and terms. This may take some but will be well worth the effort if you’re looking to cut costs.

Keep Your Credit Clean

Not every state allows this, but some auto insurance companies will run a credit check and adjust your premium accordingly. If you have poor credit you may find your premium going up, so try to keep on top of any credit card bills or payments to keep your score strong.

Increase Your Car’s Security

Insurance companies offer discounts for drivers who boost the security of their car as it reduces the odds that the company will end up handing over a payout in the event of a theft. Install anti-theft devices like gear locks, steering wheel locks, car alarms and GPS tracking systems to reassure your insurance provider and receive a lower premium as your reward.

Look Out For Teen Discounts

If you have a teenager who’s ready to hit the road, keep an eye out for insurance providers who offer special discounts on their rates for new drivers. Some companies offer lower premiums for teens who earn good grades, so your kid’s hard work could literally pay off.


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