.jpg)
Whether you're looking to save money or reduce your coverage, there are plenty of ways to lower your auto insurance. The first step is to check with your current insurance provider to see what kinds of discounts you qualify for. You may be able to save money by bundling your auto and home insurance, increasing your deductible, or taking a defensive driving course.
Increase your deductible
Increasing your deductible to lower your auto insurance is a great way to save money. You might be wondering how much you can save. The amount depends on a number of factors. For example, your state, your driving history and the cost of your insurance.
If you are driving a high-end car or have a good driver's license, you might be able to save a bundle by increasing your deductible. For example, raising your deductible from $500 to $1,000 may save you a substantial amount of money. However, you will be required to pay a lot more in out-of-pocket costs if you file a claim.
However, it can be a bit of a gamble to increase your deductible. If you have a history of filing unnecessary claims, you may want to stay below $500. Similarly, if you live in an area with high crime, you may want to keep your collision and comprehensive deductibles low.
The best way to determine whether you can afford a higher deductible is to take a look at your personal financial situation. If you have an emergency fund, it might make sense to dip into that fund to cover your new deductible. Otherwise, you may want to consider other options.
If you can't afford a higher deductible, you can still save by raising your premiums. In fact, it's not uncommon for drivers in South Dakota to save as much as a third of their premiums after increasing their deductibles. You may even be able to negotiate a better rate on your insurance policy.
However, if you're on a tight budget, it's probably not worth it to increase your deductible to lower your auto insurance. It's more likely that you'll be spending money on repairs and replacements for your car than you will saving on insurance premiums. If you're worried about unexpected expenses, you're better off paying a bit more for insurance.
The best way to determine how much you can save by raising your deductible is to take a look at the cost of your current insurance and compare that to what you can save. For example, a $500 deductible could save you as much as 20% off your annual premium.
Take a defensive driving course
Taking a defensive driving course can help you save money on your auto insurance. It can reduce your premium by up to 20 percent, depending on the company you use. But it is important to understand that these discounts are not available to everyone. You must meet certain requirements in order to qualify.
You may qualify for a defensive driving discount if you are under 25 years old or if you have fewer than three at-fault accidents on your record. Your insurer may also require that you have no recent violations. Some insurers even require you to have a clean driving record for a certain number of years.
A defensive driving course can help drivers learn how to drive safely and keep them from getting in a car accident. The course will also help them learn how to recognize danger signs. This is especially important for teens and young drivers, who have the smallest amount of driving experience.
Most insurers require you to complete a defensive driving course every two or three years. You will then receive a 10% discount on your premium for up to three years. If you continue to take a defensive driving course every two years, you can maintain this discount for as long as five years.
You can take a defensive driving course online or in person. Online courses tend to be cheaper. However, you should be sure to check with your insurer before signing up for an online course. Some insurers do not offer discounts for online courses.
You may also qualify for a defensive driving discount if you are over 60 years old. Many companies will not offer discounts to drivers who are younger than the age of 25. The American Safety Council and AARP both offer popular defensive driving courses.
If you have questions about taking a defensive driving course, you should speak to your insurer. Many companies will list approved defensive driving courses in their state.
A defensive driving course can be a valuable tool for drivers of all ages. You can reduce your monthly car insurance rate by up to 20 percent, but you must meet certain requirements in order to qualify for the discount.
Get a low-mileage discount
Getting a low-mileage discount can reduce the cost of auto insurance. It's a good idea to shop around and find the cheapest rates. The savings can be substantial. But the size of the discount you get may vary from state to state. Fortunately, you can use online resources to find out where to get a low-mileage discount.
Most insurance companies offer a discount based on the number of miles you drive. This is called the usage-based insurance program. These policies are designed to encourage safe driving habits. They also track your driving and calculate your monthly premium.
Some companies offer a discount for new drivers. Others give a discount to people who work from home. Typically, drivers who live in an urban area drive less. Insurers may also offer a discount for students living away from school.
To get a low-mileage discount, you'll need to meet some of the insurer's requirements. The company may ask for a photo of your odometer or ask you about your primary use of your car. You may also need to prove that you drive less than the average person. The size of the discount you receive will depend on the insurer.
You can get a low-mileage discount for your vehicle from State Farm, GEICO, Progressive, Safeco and Allstate. But each of these companies has its own rules. You should also ask about the benefits of the discount. For example, you may be eligible for a double discount if you are a retired driver. Also, check with your insurance company to find out if they offer a usage-based program.
The best way to find out if you qualify for a low-mileage discount is to compare auto insurance quotes from several companies. You'll want to compare rates from several local companies to find the cheapest rate. You can also try a pay-as-you-go option, which allows you to pay for the policy as you go.
It's also a good idea to compare auto insurance quotes every few months. If you qualify for a low-mileage car insurance discount, you may be able to lower your premium by up to 20%.
Bundle your auto and homeowners insurance
Getting a discount on your auto and homeowners insurance is a good way to save money. The best way to do this is to compare policies from different providers. You should also be sure to review quotes carefully to find the best deal.
Most insurance companies offer some type of bundling option. You can ask for a quote or talk to a representative to find out if your insurer offers a home and auto bundle. The savings can be as much as 25 percent. You can also save up to $500 per year if you get all of your insurance from one company.
You should also check out the financial strength ratings of your insurer. You can find out how well the company performs in areas such as claims management. You can also find out how well they handle customer service.
If you decide to bundle your auto and homeowners insurance, you should compare the rates of different companies. The best way to do this is to go to an insurance website like Credible. You can use the comparison tool to find the cheapest quotes from different companies. You can also use the comparison tool to find out what kinds of discounts are available.
Depending on the insurance company, you may be required to give the same personal information you would have given to an individual policy. Some insurers will also charge fees for policy transfers. If you do decide to cancel your policy, you should give the insurer a written notice. You should also be prepared to pay a fee if you need to cancel your policy early.
Some insurance companies will only write insurance policies for certain types of people, such as veterans. You should also look at the customer satisfaction ratings and financial strength ratings of your insurer.
You should also take into account the location of your home and car. If you live in an expensive area, you may find that your home and auto insurance rates are higher. You may also find that you are underinsured if you don't prioritize coverage properly.