Shopping for car insurance can be a stressful time because it can be extremely difficult to find the perfect coverage for your needs. The goal is to make sure you are protected for the future without having to pay an outrageous rate every month. While there are a wide variety of factors that can affect your car insurance rate, there are also several things you can do to save money. These are the five best ways to cheapest insurance rates.
1. Raise Your Deductible
A deductible is the maximum amount of money that you will need to spend after filing an insurance claim. Raising the deductible may seem risky, but it is a great way to save money every month. The average person will save nine percent on their premiums by raising their deductible from $500 to $1,000, and the savings can potentially be much higher. Just make sure to set aside some of the money you are saving on premiums to help pay for your next claim.
2. Maintain Good Credit Score
Your credit score is one of the key factors that car insurance companies use to help determine the price of your policy. People with good credit are viewed as lower risk because they historically file fewer claims than people with poor credit. They are also more likely to pay their premiums on time. Paying your bills on time and keeping low balances on your credit cards are the best ways to maintain a good credit score.
3. Shop Your Quote
You would not purchase a car or a kitchen appliance without shopping around for the best price, so you need to do the same thing with your car insurance rates. You will want to shop your quote every year even after you find the perfect policy. Car insurance is one of the most important purchases in your life, so you do not want to get complacent. It is also important to choose an established company because they will have the means to pay you after an insurance claim quickly.
4. Take Advantage of Discounts
Every car insurance company will provide discounts to their customers as a reward for good behavior. Taking advantage of a few of these discounts is a great way to lower your insurance rates. Driving a low amount of miles, taking a defensive drivers’ course, installing an anti-theft device on your car and insuring multiple cars are all great ways to earn a discount. You will also reduce your rates if you get home and auto insurance from the same company.
5. Avoid Accidents and Tickets
It may seem simple, but there is no better way to reduce your car insurance rates than by being a safe driver. The average insurance policy will go up by 41 percent after filing one accident claim. Getting a moving violation will also increase your rates because your reckless driving makes you more likely to get into an accident in the future.