4 Tips for Keeping Your Car Insurance Low

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4 Tips for Keeping Your Car Insurance Low

If you own a car, you also own a car insurance policy. Auto insurance is important for protecting you, your vehicle, and your money in the case of an accident, but it can also get pretty pricey. Fortunately, you can do a few things to keep your premium low and your wallet full. The next time you shop around for a policy, remember these four tips for keeping your car insurance low.

Compare Policies

Every insurance provider is different, which means you’re going to get a different premium everywhere you go. Before you choose an insurance company, make sure you do some shopping to compare rates. Get quotes from several different providers, and check out the different options each provider offers. Even if a company gives you a higher quote, they might have unique discounts or bundles that will give you a better rate overall than their competitors. If you’re torn between a couple different coverage options, get a few different quotes to match each possibility. The more information you have, the more likely you are to find the most affordable policy.

Seek Out Discounts

All auto insurance companies have a range of discounts and bundles you can add onto your policy to save money. Always ask about these discounts, even if you can’t see them on a quote page. You can do several things to achieve and maintain these discounts. For example, many companies offer better rates for students with good grades or customers who also purchase home insurance through them. You might also get a discount for your age, military service, clean driving record, low annual mileage, or other details.

Be a Safe Driver

This is one of the most common—and most effective—tips for keeping your car insurance low. If you have a poor driving record, auto insurance providers will view you as a risk to insure and therefore charge you more. You can’t change what’s already on your driving record, but you can work to become a safer driver and improve your record—and insurance premium—over time. There are plenty of ways to do this. You can take a defensive driving course or sign up for apps that will track your driving behavior on the road. This lets your insurance company know you’re being a safe driver, thus potentially decreasing your premium. You should always practice safe and calm driving while on the road. Remember that even temporary and seemingly minor behaviors such as road rage can lead to a spike in your insurance rates, costing you a lot of money down the road.

Maintain Good Credit

Insurance companies consider many different factors when calculating your premium, including your credit score. Because your credit score is indicative of your financial history, insurance providers take a good credit score as a sign you’ll keep up with your payments, so they don’t need to charge you as much. You can maintain or improve your credit by paying your bills on time, not overcharging your credit card, and paying ahead on any loans you might have. Try to keep an eye on your credit score so that you can correct any mistakes on your credit report and get the best insurance rates possible.