Along with the expense of owning a car, you also need to plan for annual car insurance premiums. These can increase little by little, until you're paying what seems like a high amount. Here are a few practical and easy ways that can help lower your auto insurance premiums.
1. Raise Your Deductible
This is one way to decrease your costs almost instantly. By raising your deductible, you'll be out a higher amount if you have an accident; but if you're generally a good driver, this is a risk you can probably afford to take. Do be sure to budget for the deductible. Your savings account should generally have enough funds to cover your deductible at any given time.
2. Drive Less
This may not be possible for some, but even carpooling to work with a colleague or creating a carpool to take the kids to school can put you in a lower driving bracket. Some auto insurance providers track how much you drive each year; the less you drive, the lower your premiums may be since less time on the road means less chance of an accident.
3. Take a Safe Driver Course
If you have had any claims recently, and even if you haven't, taking a refresher course in save driving can help you lower your expenses. These courses can often be taken online for a small fee, but the savings you'll experience in the years that follow can make up for it.
4. Improve Your Credit Score
Surprisingly, your credit score affects more than your ability to borrow money for your home or auto loan. It's also used as a representation of you as an individual. Those with lower credit scores statistically are more of a risk for insurance providers; and as such, they may be charged higher premiums. Fixing your credit is a long-term endeavor, but you can start by closing out excess credit cards, paying minimum payments on time and eliminating old debts.
5. Shop Around for a New Policy
It's easier than ever before to find a new, more affordable policy if you just take the time to do it. Luckily, calling an independent insurance agent makes the process fast and simple. Asking your agent for several quotes helps you select the best combination of coverage and price.