Eight Ways to Save on Car Insurance

Owning a car is an expensive undertaking. You must consider the cost of monthly payments, unexpected repairs, and most importantly, insurance. Fortunately, smart planning, research, and a record of clean credit can help you temper the sometimes exorbitant fees. Review the tips below to start saving.

    1. Compare competitor prices. When it comes to finding the best car insurance, market research is imperative. Shop for coverage by requesting quotes from a variety of providers. Choose a company that has a positive reputation and can meet your coverage needs at a reasonable price. (Note: the latter point often depends on a clean credit score and payment history.)

    1. Consider umbrella policies. Many insurance companies offer more than automotive coverage. “Umbrellas” allow you to cover several valuable items within the same policy, including your home, car, life insurance, etc. While price shopping, ask your providers about the cost differences between individual and umbrella policies. Many offer significant discounts for clients with additional insurance needs.

 

    1. Forgo the “flash.” Car insurance prices are based on a number of factors, one of which is the car itself. Even those with squeaky clean credit may be paying higher premiums for a flashier car, which may include its:
  • Price
  • Category classification
  • Crash test rating
  • Estimated cost of parts and repairs
  • Likelihood of theft

If you are committed to paying less, skip the brand new sports cars, and consider buying a conservative model with safety features. A low-risk car is likely to come with lower-cost insurance.

    1. Utilize higher deductibles. For those who would rather pay up-front, asking for a higher deductible is a great way to lower monthly insurance rates. Your deductible is the amount you must pay before the insurance company picks up the remainder of the bill. If you can afford to take an aggressive role when repairs and accidents arise, ask your provider how the changes could affect your monthly payments. Increasing your deductible by a few hundred dollars can sometimes lower your collision and comprehensive costs by a significant percentage.

 

    1. Only elect coverage you need. Why pay for something you don’t need? Get specific with your insurance coverage by deciding how much comprehensive and/or collision insurance you need. Older and low-value models often do not require as much coverage because repairs may not exceed the deductible amount.

 

    1. Avoid the extras. Many insurance premiums include coverage of roadside assistance and rental car costs. If you are not a globe-trotter, roadside assistance may not be a necessity. Similarly, opt out of the rental car service if you already own another vehicle. Extras are nice in certain situations, but they are sure to drive up costs.

 

    1. Take advantage of additional discounts. Insurance companies offer all kinds of rewards for exemplary customers. When shopping for quotes, ask about discounts based on:
  • Age (e.g., AARP memberships)
  • Clean driving records
  • Low mileage
  • Group insurance through your employer
  • Student status (e.g., maintaining a high GPA)
  • Your credit score
  1. Maintain a clean credit history. Credit is your primary bargaining tool when it comes to receiving the most competitive car insurance rates. It allows providers to feel confident in your ability to pay on time, and it establishes you as a solid customer right away. If your credit is less-than-stellar, consider working through the credit repair process before shopping for a new insurance policy. If you are struggling with the specifics of cleaning up your credit due to unfair credit reporting, contact Lexington Law. We can help you understand your credit report and offer suggestions to help improve your credit score.