How to Lower Car Insurance Cost

Car insurance is a necessity for anyone who drives. For most driving Americans, however, the cost of an insurance plan puts a painful dent in the monthly budget. In times of great economic hardship, this strain can sometimes be too much to bear.

The good news in all this is that getting a lower rate is possible for most individuals, it’s just about knowing how to get it and where to look. In the article below, we will show you exactly that.

Search the Market

For most individuals, searching for car insurance is something that happens infrequently at best. Typically, once they pick a provider, they stick with the same company for years on end.

While this is the easy way out, it’s not always the smartest decision for your pocketbook.

Like any type of insurance, car rates fluctuate over time, meaning the company that saved you money last year might now be more expensive than its competitors. As such, taking time once per year to shop around for the best rates is a simple way to maximize your savings.

The work may be tedious but can save you hundreds if you find a plan that works better for your situation.

Balance Premiums and Deductibles

Similar to health insurance, auto policies with higher deductibles normally have lower monthly premiums. These lowered premiums reflect that you are responsible for a larger out-of-pocket payment if you are in an accident. Since the insurance company has less to lose, they give you a break on your rate.

However, there are considerations to make when opting for lowering premiums in this manner; it’s not the right choice for everyone.

The most important thing to remember is that you must have your full deductible amount available in case of an accident. With needing $1,500 or potentially more in savings should you get into an accident, it makes the high-deductible route impossible.

Change Your Coverage Amount

Reducing your coverage may sound like a bad idea, but it might be a smart option if you drive an older vehicle. The reason for this rests in how insurance companies decide whether to fix a vehicle or call it a total loss.

When an older vehicle is involved in a collision, the damage they receive is often more expensive to fix than the car’s market rate. No matter how much insurance coverage an old vehicle has, an insurance company will never pay you more than the value of your car.

Thus, overinsuring an old vehicle is almost always a waste of money.

Behavior-Based Discounts

One of the most accessible ways to earn cheaper car insurance is by taking advantage of behavior-based discounts. These are discounts given to good drivers, good students, and those with a clean driving record free of violations.

The logic behind these plans is that good behavior in one area of life indicates good behavior in others. As such, if you pay your bills on time, have a good credit score, are a safe driver, and qualify for a good student discount, insurance agents will assume you are a lower-risk driver overall.

Most major insurance companies offer some type of behavior discount, meaning you should check which best fits your needs and driving history.

Usage-Based Insurance

Some drivers, especially stay at home parents, the elderly, and those who work from home may benefit from mileage-based insurance coverage. These plans calculate your insurance rate based on the average number of miles you drive, meaning some can save hundreds per year depending on their driving habits.

Drive a Low-Risk Car

Car insurance companies determine their pricing based not only on you but also on the type of car you drive. When you drive a statistically safe car, it’s common that you see a drop in your car insurance rates. Start driving a sports car and the opposite happens.

So why does a safe car offer an answer on how to lower car insurance premiums? The logic is in the risk pool.

Like all types of insurance,  companies set their rates based on the risk factors of the individuals they insure. Cars that prove their worth in safety testing like the MSRP are ultimately categorized in a lower risk pool than vehicles that under-perform. As such, insurance companies charge lower rates for safer vehicles, knowing that even if an accident occurs, it’s less likely to result in serious injury.

Defensive Driving Courses

Taking a defensive driving course in the near future might show your insurance company that you are a lower risk on the road, thus scoring you a car insurance discount. While the cost of a defensive driving course may not pay off right away, the lasting impact it has on your insurance when coupled with a safe driving record can grant you substantial savings.

Casa Grande Insurance Experts

Arizona residents are hard-working individuals who need to make their paycheck stretch around their busy lifestyles. This is why at the Gebhardt Insurance Group, we are dedicated to helping residents find the lowest insurance rates around.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the right coverage for your business. Give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.