It’s fair to say that many of us resent having to pay for car insurance. It’s like betting that something bad will happen when we are driving, and that’s not something we like to contemplate. It can even be quite expensive. The best car insurance in North Carolina may come with reasonable costs, but in states like Louisiana, Oklahoma, and Michigan the annual auto insurance rates can be rather prohibitive.
It’s a good thing that there are at least a few smart ways for you to reduce your insurance premiums. Here are a few tips that can definitely help:
- Buy a safe car with a boring reputation. You should start with Hondas and other family sedans that teenagers and young adults disdain. However, when you pick affordable sports sedans like the WRX STI from Subaru, you’re going to have to pay more. It’s best if you contact your insurance agent first before you buy a car, if you want to avoid high auto insurance rates.
- Get multiple quotes. This may seem like an obvious step to take, but you’d be surprised at how many people buy insurance with any sort of comparison shopping. You can do this easily online, so you may as well do it. A policy that costs $500 a month with one insurance company may cost $1,500 a month with another.
- Set your deductible level to a reasonable level. The reasonable level is the repair expenses that you simply can’t afford to pay. So if you can afford a $400 repair job, that shouldn’t be your deductible level. It should be as high as you can manage, because higher deductibles mean lower premiums. By increasing your deductible from $500 to $1,000, you can end up reducing your premiums by 9%.
- Take care of your credit scores. It’s safe to assume that people who are financially responsible and who pay their debts on time will also be responsible people on the road when they’re driving. Most auto insurance companies certainly think so, which is why they can charge higher premiums for drivers with poor credit scores. In one Consumer Reports study concerning Virginia car insurance, it was found that drivers there with poor credit scores had to pay $1,500 more in annual insurance premiums. So pay your credit card charges on time,
- Take advantage of possible discounts. You can get discounts for a variety of reasons. Some insurance companies can offer discounts for former military personnel, for example. You can consult your insurance company and see if they will reduce your premium payments if you take and pass certain safety driving courses. You can also pay less if your car is relatively new or it isn’t among the most commonly stolen cars in the country.
- Lessen your coverage. As your car gets older, the need for insurance coverage is reduced. So you may want to abandon comprehensive and collision coverage when your car is old and relatively cheap.
- Drive safely. This is another obvious way to avoid paying unnecessarily high premiums. You just have to get on the road and obey all traffic regulations. Don’t go over the speed limit, and don’t get a driving ticket. You also certainly don’t want to drink and drive. The more tickets you get and the more accidents you’re involved in, the more you pay for auto insurance premiums. That’s because you prove to the insurance companies that you’re a big risk to them.
It’s true that auto insurance can be considered a necessary evil. You don’t want to get into an accident so you can file a claim. But by using with these tips, you may reduce your premiums to a more tolerable level.