More Tips For Lowering Your Auto Insurance Premium

Posted on Jan 7th, 03:49 pm, under Improve Your Auto Insurance Rate

Last week, we gave you several tips on how to lower your insurance premium costs. Here are five more proven money-saving methods that all prudent buyers should consider:

1. Change your car.

What you drive affects what you pay (as we discussed before in a previous article). Insurance companies assess vehicles based on several factors, including price, crash test rating, repair costs, and even how often that particular model gets stolen. To lower your premiums, avoid buying newer vehicles, sports cars, luxury vehicles, and models that aren't near the top of the safety ratings (typically smaller cars). You can check safety ratings at the National Highway Traffic Safety Administration (NHTSA) website here. 

2. Use a car alarm or anti-theft device.

Show your insurance provider that your car is equipped with an anti-theft security measure, and you may get a discount. 

3. Lower your insurance levels.

Simply put, the more coverage you have, the more you pay. If you've got an older car, you might be able to save on insurance by eliminating collision and comprehensive protection. However, keep in mind that your state requires a minimum level of liability coverage, so check your state laws before reducing your insurance level. In addition, don't go too low; avoid going down to the minimum level, since you may find yourself in a bind if you actually get into an accident. Read more on how to optimize your insurance levels here

 4. Boost your credit score. 

These days, insurance companies are taking more things into account in their risk assessment, and they've started to inspect their customers' credit history. If your credit score is good, you might be able to get a more favorable rate. (Do note, however, that this is not allowed in California). 

5. Show your loyalty.

The insurance industry is highly competitive, and actually landing a customer costs insurance firms a lot of money in advertising. That's why they give lots of incentives to loyal customers who stick with them through the years. Most firms offer a percentage off your total premium each year you remain with them. If you stay with one company long enough, you'll probably be hard-pressed to find a better deal elsewhere.