Car Insurance on the Cheap: 4 Tips for Lower Rates

Car insurance is one of those things that we hate to pay for, but really do need. Motor vehicle accidents can be costly and insurance is the only way to cover the costs. Rates vary widely between carriers and are influenced by a number of factors. Unless you have carefully done your homework, you may be paying more than you need to and why do that? Here are some tips to help you get the best rates on car insurance that you can.

Considerations for Credit

Many carriers take credit scores into account when determining car insurance rates; fair or not, this is how the cookie crumbles. Even if you have a good driving record, you may pay up to 40 percent more for car insurance than someone who has a credit score of at least 750 that is no small amount. Now, if you have poor credit, you might consider looking into a company that does not factor credit scores into their premium rates it is possible that you may pay more in other areas to compensate, but who knows. If you plan on renewing a policy with a current carrier and your score has improved since your last policy went into effect, make sure you contact them to see if this will make a difference in your premium.

Make Sure to Comparison Shop

This one may sound obvious but many people may skip it over thinking that all companies probably charge around the same rate for similar policies. While this may be the case sometimes, it is not always. The last time I shopped around for car insurance, I looked into more policies than I normally would have and the price differences were sometimes significant.

Inquire about Any Possible Price Breaks

There are many factors that deem a person a lower insurance risk and the companies offer rate reductions for said factors. When pricing policies, it is important to find out which ones, if any, insurance companies consider; when getting online quotes, some of these considerations will be automatically factored into the quote process, but all of them may not be.

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If you work from home and only drive your car on weekends, you are statistically less likely to have an accident since you are on the road less often you might get a discount. See if taking driver safety courses qualifies you for a discount. Belonging to certain organizations may also offer the benefit of lower rates. You cannot know unless you ask so make sure you do.

Pay a Higher Deductible

One of the most significant ways to save on your insurance premium is to raise your deductible; the less the car insurance company has to shell out to cover a claim, the less money they will want from you when calculating your premium. If your budget is tight and you really want to lower your bills, this is a great way to do it. But, do not get too carried away. You want to pick a deductible that you could actually cover ;do not just pick the highest one to save the most money if there is no way in heck you could get that money together in the event you actually filed a claim.

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