Car insurance rates are often considered complex because even one variable could affect them significantly. Maybe you were involved in a minor accident. Perhaps you’re moving or starting a family. These are all potential situations that could alter your current car insurance premium.
If you’re concerned about the rising cost of your car insurance, consider the following car insurance saving tips.
- Research Multiple Quotes
One of the most common ways to save money on car insurance is shopping around. Receiving quotes from multiple carriers can help you find a lower rate. The more quotes you look at before switching policies, the more likely you will find a cheaper policy that aligns with your budget.
- Increase Your Deductible
Your auto insurance deductible is the amount you are responsible for paying on a covered loss before your auto insurance policy covers the rest. You may opt to pay a higher deductible to lower your monthly premium. Research shows that safe drivers save hundreds of dollars every year by raising their deductible. Increasing your deductible does come with some financial risks, however. If your car suffers significant damage in an accident, it’s expected that you’ll have the necessary funds to cover the high deductible. If you’re on a budget, increasing your deductible is not ideal.
- Pay Your Premiums up Front
Instead of paying monthly premiums, you have the option to pay your premium in advance for up to an entire year. Opting to pay your premiums in full can help you save over 10 percent on your car insurance.
- Improve Your Credit Score
While often overlooked, your credit score impacts the amount you pay for car insurance. If you have a poor credit score, you may be forced to pay higher premiums until things improve. There are a few ways that you can improve your credit score. Focus on paying your bills on time. Also, it’s recommended that you look over your credit report to see if there are any errors. Any false information on your credit report should be removed as soon as possible.
- Bundle Coverage
You may qualify for a significant discount on car insurance by opting to bundle coverages. Many drivers choose to bundle their car insurance with home or renters insurance. Bundling coverages allows you to pay one rate for the entire bundle. You’ll also qualify for a good discount that can help you save around 10 percent on insurance costs.
- Promote Customer Loyalty
Practicing customer loyalty is one of the more complex car insurance saving tips. You can save money on your premiums by using the same insurance company for several years. Many auto insurance companies offer a customer loyalty discount. However, it’s recommended that you look over your policy carefully to ensure that you’re saving money on your car insurance.
- Limit Your Driving
Another way to save on car insurance is to simply reduce the number of miles you drive. This can help you qualify for a low mileage discount. However, you’ll have to adhere to a limited amount of driving each year to continue receiving the discount.
Your initial reaction to your car insurance rate rising maybe frustration. However, the ways mentioned above can help you save money and alleviate stress. At McCarty Insurance Agency, we can help you get customized auto insurance coverage for your valuable car. Contact us today to learn more.