In most states, you must have car insurance, but finding the right plan and knowing how to get the best car insurance rates can be difficult. If you want to get the best rates on your car insurance, you need to take your time when researching plans. Part of your research involves comparing quotes from multiple car insurance companies. Also, consider several helpful strategies you can use to reduce your yearly insurance rates.
When lowering your car insurance premiums, you should opt for all the vital coverage options you may need to stay on the road. Finding the best insurance policy for your situation involves identifying how much you want to pay and balancing that number against what types of protection you want. Here are a few strategies that you can use to help find the best car insurance rates.
Gather Your Information Before You Begin Searching
Before you can start finding your best car insurance rate, you need to identify all the relevant information you need to provide to insurance companies. When collecting this information, you may want to make decisions about the following:
- How much do you want to spend on car insurance?
- What kind of car do you want to buy?
- What coverage do you think you’ll require?
- How many miles do you plan to drive each year?
- How many vehicles do you want to own?
Also, you may want to collect personal information, such as your credit score and financial documents that show your earnings. Preparing this information before getting quotes can help you save time throughout the process.
Do Your Research Before Buying a Car
If you’re in the market for a new car, research insurance companies before purchasing a vehicle. The type of car you drive can affect how much you pay, so understand how much it will cost to insure your new vehicle before committing to that purchase. If you want to learn this information, you can contact some insurance companies to get quotes on approximately how much they think it would cost to insure your desired vehicle.
Maintain a Good Credit Score
Your credit score is one of the most crucial factors that insurance companies weigh when deciding your monthly and yearly rates. If you want to keep your payments as low as possible, maintaining a good credit score can help. To keep your credit score high, you should avoid borrowing money and make all your required payments on time. If you have a low credit score, you may want to research some companies that offer competitive rates to people with low credit. Many people encounter this problem, so companies may offer incentives to use their services even if you have a poor credit rating.
Take Advantage of Bundling Discounts
If you plan to own multiple cars or have more than one car in your family, taking advantage of multi-car discounts can save you money. You may also be able to save money by bundling your home and auto insurance. Bundling the insurance for several properties with one company can lead to more perks and better rates than you might have if you hold policies with multiple companies.
Reduce Your Mileage
When signing up for car insurance, an agent may ask you how many miles you plan to drive each year. The number of miles you drive in a year can affect the cost of your insurance because the more time you spend on the road, the more likely it is that you can get into an accident. If you live in an area with public transportation systems, you may want to reduce your drive time by relying on these systems more often.
Drive Safely
Safely driving your car is not only your duty as a driver, but it can also help you save money on your insurance payments. Many insurance companies offer incentives to their policyholders to drive safely, as safe driving reduces the risk of accidents. Before you decide on an insurance plan, you may want to ask about any “safe driver” incentives that the company offers.
Benefit From Good Student Discounts
If you’re currently a student at a college or university, you may be able to benefit from “good student” discounts. These discounts provide you with financial incentives to perform well in school. If you’re curious about these programs, inquire about them when discussing your policy with an insurance agent.
Increase Your Deductible
Your deductible is what you need to pay before your insurance kicks in. Increasing your deductible can be an effective strategy to reduce your annual or monthly payments. While this may cause you to pay more out of pocket in the event of an accident, it can still save you money in the long run if you’re a safe driver.
Upgrade Your Vehicle With Safety and Anti-theft Devices
Upgrading your safety features may be able to keep you safe and save you money. Many insurance companies offer incentives to people who purchase cars with advanced safety and anti-theft devices. These can help prevent damage to your vehicle and discourage theft, so insurance carriers may be able to offer you a lower rate if your car has these features. Before purchasing your vehicle, you may want to explore these incentive programs.
Shop Around
Even after finding a quote in your price range, you should keep shopping around. Inquiring about the rates at several insurance companies can help you identify the insurer that offers the best solutions for your unique situation. Many companies provide insurance quotes for free, so there’s no downside to inquiring about multiple insurers before purchasing a specific policy.
These are just a few strategies that we think can help you find the best car insurance rates for your situation.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
