10 Ways You Can Lower Car Insurance Premiums

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By: Aquib Nawab

Finance

Examples include multi-car, vehicle safety, new car, good driver, and good student discounts. Each discount offers potential percentage savings. Good drivers may qualify for discounts ranging from 10% to 40%.

1 - Explore Car Insurance Discounts

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Insurance companies consider safety, theft risk, and repair costs. Resources like the Insurance Institute for Highway Safety help in making informed decisions. The National Insurance Crime Bureau lists the most stolen cars annually.

2 - Drive a Safe Car with Low Repair Costs

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3 - Bundle Insurance Policies

Bundling policies offer discounts and simplifies insurance management. Other bundled coverage options like motorcycle and boat insurance are also available. Generally, a bundling discount can reap savings of 5% to 25%.

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The Insurance Information Institute suggests obtaining quotes from at least three insurers. Be sure to compare identical policy coverage and limits for accurate comparisons. Car insurance rates for the same coverage can vary significantly among insurance companies.

4 - Shop Around

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Many insurers offer discounts for lump-sum payments. Major insurance companies like Progressive and Allstate provide this discount. Progressive, Allstate, American Family, and Farmers are among the major insurers offering this discount.

5 - Pay Your Premium in Full if Possible

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6 - Let Your Insurer Track Your Driving

Programs like USAA's SafePilot and Progressive's Snapshot track driving behavior. They reward good drivers with potential discounts. SafePilot program participants can land a discount of up to 30%.

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Garaged cars are less prone to theft and damage. Savings can be substantial compared to other parking locations. Some insurers will lower your car insurance if you park your car in your home garage.

7 - Park in the Garage

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Improving credit scores can lead to better insurance rates. Studies show a correlation between credit scores and insurance premiums. Drivers with poor credit pay an average of 76% more than those with good credit.

8 - Boost Your Credit if Possible

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9 - Take a Defensive Driving Course

Approved courses in different states offer discounts on insurance premiums. Defensive driving courses benefit both safety and savings. In Texas, graduates can nail down a discount of up to 10% for three years.

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Rebekah Nelson, spokesperson for USAA, recommends reviewing and potentially raising deductibles. Increasing deductibles could result in substantial savings, according to the Insurance Information Institute. Raising your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by 15% to 30%.

10 - Review Your Deductibles

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