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Your car insurance rates are based on many factors including your driving history, the type of car you drive, and the geographical region you live in. There are certain things you can do to control these factors and get the best car insurance rates possible. This article outlines 7 steps that will help you get the best car insurance rates possible by taking some control over these factors.
1) Do Your Research For Car Insurance
Many people have a misconception that they cannot get better rates unless they switch to another company, but that isn’t true. Instead, you can often get more money by simply shopping around for a different car insurance company. Because each company has its own set of rules and regulations about which types of people qualify for discounts, doing your research is one of the best ways to ensure you are getting every discount available to you.
2) Shop Around for Quotes For Insurance
When it comes to getting low rates on car insurance, shopping around is a must. In fact, some insurers offer multi-car and multi-policy discounts, which reward people who take their business elsewhere. Look for these to save money when you switch your auto insurance coverage.
3) Consider Third Party Coverage
Many drivers overlook or misunderstand their options regarding third-party coverage when purchasing auto insurance. Third-party coverage (or liability) pays for damage and injury you may cause to others in an accident. This is mandated in most states and is typically required if you want to drive on public roads. Understanding how liability coverage works, what factors affect your rates and which optional coverages are available can help you save money on your premium as well as better protect yourself from legal costs if an incident does occur.
4) Check Out Discounts For Insurance
Discounts are a smart way to save some cash on your monthly premiums. Most companies offer discounts for everything from being a good driver to bundling your home and auto insurance. Some insurers also offer preferred customer rates for those who’ve been with them for years, but be sure to shop around each year just in case you can get a better deal elsewhere.
5) Maintain Excellent Credit
If you’re looking to lower your car insurance rates, one of the easiest ways to do so is by having a good credit score. Most insurers take your credit score into consideration when figuring out how much they’re going to charge you, which means that if you have a spotless report, you may be eligible for cheaper insurance (provided you aren’t buying a fancy new car). If yours is less than stellar, you can improve it by paying off any outstanding bills or moving some debt around.
6) Know the Mileage
Most car insurance companies offer discounts for low-mileage drivers, typically those who have fewer than 12,000 miles per year. That doesn’t necessarily mean you have to sell your gas-guzzler (or maybe it does), but don’t neglect to mention your mileage when negotiating with an insurer. You may qualify for a discount that could potentially save you hundreds of dollars on your policy.
7) Pay your premium monthly
Paying for your car insurance premium monthly will help you save money in two ways. First, you’re spreading out that monthly payment over twelve months instead of having to come up with it all at once, so it becomes easier to set aside. Second, since many auto insurance companies give a discount for paying in full each year—usually around 10%–you can save money by paying each month.