Avoiding Crash And Burn: 5 Ways To Pay Less for Car Insurance

Avoiding Crash And Burn

With inflation taking a bigger bite out of everyone’s paycheck, Americans are increasingly looking for ways to save money on the essential things in life, like car insurance. Surprisingly, for most people, this area can provide lots of ways to save money each month, so you’re not spending any more than you have to without sacrificing great coverage.

Drive safely

Speeding tickets and accidents significantly impact your car insurance rates, and driving in an unfamiliar environment increases these risks. When traveling long distances, many motorists use car shipping services to decrease their chances of becoming involved in a severe accident in unknown driving conditions in unfamiliar places.

Shop around

Auto insurers adjust rates regularly, and shopping around each year can save significant money on annual premiums. Most insurers provide quotes on their websites, making the process faster and more straightforward. As a rule of thumb, it’s an excellent idea to compare quotes from at least three different companies to ensure your renewal rate is competitive.

Having your renewal policy paperwork handy when comparing rates helps ensure that you’re making an equal comparison for the identical coverage amounts and deductibles to highlight where you’ll get your best deal.

Combine coverage whenever possible

Most insurers offer their customers a discounted rate when they combine multiple policies with the same carrier, like renters or homeowners coverage. Those discounts can save you substantial amounts of money versus their standard rate.

Not all cars are rated the same way

All car insurance companies have access to industry-wide information when setting premium rates for specific vehicle models. Still, each company doesn’t use the data the same way and doesn’t provide equal weight to those factors.

However, historically, some vehicles have a more significant loss record than others, impacting their insurance premiums. So, before purchasing your next car, it pays to do some homework to learn which vehicles or models will cost less to insure.

Location, location, location

The car’s location will significantly impact insurance costs for many reasons that have nothing to do with your driving record. While driving in big cities with tens of thousands of motorists on the road may increase your chances of colliding with another car, this situation is more complex.

Drivers in some states with large rural areas like Montana and Oklahoma, for example, pay some of the highest car insurance premiums in the country. These rates are partly due to the long daily commutes typical in these places and a high percentage of uninsured drivers.

Maintain a good credit rating

For most drivers, a good credit score translates into better rates for car insurance. While not all car insurers use consumer credit as a significant factor in setting rates for their customers, a credit score provides insight into your likelihood of filing a claim.

Wrap up

While some factors in lowering your car insurance rates can take time to adjust, consider taking a few minutes to shop around to ensure your insurance rates are in line with the rates offered by other insurers. Your results may be surprising.

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