Car insurance is one of those necessary bills that no one likes to pay. Sometimes, however, there are ways to lower your car insurance rates that you may be unaware of. Insurance companies, large and small, are looking to secure your business by offering a multitude of policy options. While this may sound good, when you have so many different policy options for your car insurance, it can quickly become overwhelming and difficult for a person to compare policies and understand who offers the lowest car insurance rates.
If you want to lower your car insurance rates or insure your first car, this article is for you. We will cover our top five tips for ensuring you secure the cheapest possible car insurance rate.
Work with Local Insurance Service Providers
Bigger insurance service providers like Geico and State Farm may be instantly recognizable, but are they giving you the best deal on your car insurance? Take the time to investigate local and regional insurance service providers as they often have a better customer satisfaction rating than the national companies. They are also more likely to work with you on your specific car insurance needs and can potentially offer you a lower rate as well.
Never Assume Anything When it Comes to Insurance
Bigger insurance providers have bigger marketing budgets for commercials that may lead you to believe they offer the lowest car insurance rates. Don’t assume that an insurance provider that worked for your neighbor will be the best for you. A car insurance provider may be the cheapest for one person in one state, but they could be the most expensive car insurance in another state. For example, in 2018, Progressive was the cheapest for New York drivers at $1,298 a year (on average), but they were the most expensive in Florida at $3,015.
Doing your due diligence and shopping around is the only way to guarantee you get the best insurance for your car possible.
Ask For Discounts
Many car insurance providers can provide discounts for their customers if they meet specific criteria. It’s a good idea to call your car insurance provider to see if they offer any special discounts. Below is a list of criteria that insurance providers will sometimes provide discounts for:
- Have a clean driving record
- Insure multiple cars with one policy
- Bundling car insurance with other insurance policies
- Paying their premium all-at-once instead of monthly
- Own a car with anti-theft features
- Are members of a particular professional organization
Work on Your Credit Score
Unless you live in Michigan, California, Hawaii, or Massachusetts, your credit score will likely significantly determine your car insurance rates. Many insurance providers say that their customers’ credit has been shown to correlate with their chances of filing claims.
According to a Nerdwallet analysis, having poor credit can increase people’s car insurance rates by hundreds of dollars a year compared to those that have good credit. One way to improve your credit and help lower your car insurance rates is to pay your bills on time and reduce any debt.
Choose Your Coverage Wisely
If you have an older car or one with a low market value, you may want to skip comprehensive and collison coverage for your car. Collision coverage pays to repair the damage to your car from another car or object. Comprehensive coverage pays to repair damage to your car that occurs from animal accidents, floods, fire, vandalism, weather, or car theft. However, the maximum payout under either of the policies listed above is limited by the car’s value. If your car is older or of low value, it may be in your best interest to skip this type of insurance as any payout you would receive would be minimal.
If you’re interested in insuring your car for the best possible price, it’s best to work with professionals. Dunham Insurance Services is passionate about creating clear and comprehensive insurance policies for its clients. At Dunham Insurance, no matter what type of insurance coverage you need, we take the extra time to make sure that you completely understand your coverage and that it fits your needs perfectly. Get in touch today to learn more!