This is one of the most commonly asked questions that everyone wants answered. How can I lower my insurance premiums? Insurance companies have many factors for calculating insurance, and they all weigh these factors differently. These factors include type of car, driving history, and age of driver. They don’t let it known how heavily each factor is weighed, and some of these factors you cannot control. There are certain things that you can do that can help you lower your auto insurance rates.
- Driver’s Education
- Increase Your Deductibles
- Drop Collision
- Anti-Theft Devices
- Combining Policies
- Student Discounts
The first thing that every driver can do to reduce their rate is to take a certified driver’s training course. This course usually consists of classroom sessions followed by in car sessions. The classroom session is usually a total of 40 hours, and the in car session being 12 hours. In order to pass the course, you must pass both the in-class exam and the road exam. Upon completion of the course you will be given a certificate that you will have to provide for the insurance companies. Driver’s training will lower your rates by about $300, so it basically pays for itself at the end of one year. This is especially important for young drivers who already have to deal with sky-high insurance rates.
If you have collision or comprehensive coverage, then you also have a deductible. A deductible is a fee you must pay when you make a claim before insurance will cover your damages. It is present to help try and prevent fraudulent claims. When you set up your policy you can select your deductible amount and common amounts include $250, $500, and $1000. When you raise your deductible, this reduces your chances of filing a claim, thus reducing your insurance rates. It is not a huge factor, but it can reduce your rates by a couple hundred dollars.
If increasing your deductible did not lower your insurance premium enough, you may want to consider dropping collision coverage altogether. This can be a good way to save money if you have an older car, as when you file a claim the insurance company goes by the ‘blue book’ value of the car. If your car is older, and you already have a large deductible, there might not be much left when you try to settle with the insurance company.
By installing anti-theft devices, you will lower the probability that your car will be stolen. The lower the probability for theft, the lower your auto insurance rates will be. However, this does not seem to decrease your insurance rate by a large amount, it only has a small amount.
If you have an insurance company that also offers home insurance, then you may want to think about combining your policies with the same company. If you insure you house and car with the same policy you will get a discount. The amount of this discount depends on the company however, but it can end up being a couple hundred dollars. Also the more cars you insure with a company the better your rates will be. So if you have a family, with multiple cars, ask about the multiple automobile discounts.
This does not apply to everyone and not every company offers it, but most big national companies will offer a discount for students. If you are in high school, or college, then you would be eligible for this discount, and it can end up being several hundred dollars. Some companies require that you maintain a minimal GPA, and require confirmation of this GPA via official transcripts. For students this is a great deal, as it helps lower the already sky high rates for young people.
Take note of each of these tips when looking for auto insurance or look online for some quotes employing these new tips. You can get a free online insurance quote at Auto Insurance Knowledge under the free quote section. This quote will compare all companies in your area and bring you back the best prices. See how the prices change when you alter the deductible or drop collision.