Auto insurance is a necessary expense for drivers, but that doesn’t mean you have to pay more than you should. With so many insurance companies competing for your business, it can be overwhelming to navigate through the options and find the best rates. However, by following these eight strategies, you can secure good coverage at the cheapest possible rate.
Shop Around for the Best Rates
It’s a common misconception that one insurance company will always offer the lowest rates. In reality, rates can vary significantly from one insurer to another. To ensure you’re getting the best deal, take the time to compare car insurance rates from multiple companies.
Take Advantage of Discounts
Insurers often provide various discounts that can help lower your car insurance premium. Some common discounts include:
- Bundling car insurance with other policies
- Insuring multiple cars with one policy
- Maintaining a clean driving record
- Paying your premium in full annually or semi-annually
- Agreeing to receive documents online
- Owning a car with anti-theft or safety features
- Being a member of professional organizations or affiliate groups
Remember to compare rates from multiple insurers to ensure you’re getting the best discount available.
Improve Your Credit Score
In many states, insurance companies consider credit scores when determining car insurance rates. Research has shown that customers with poor credit tend to file more claims, resulting in higher insurance rates. To lower your premiums, work on improving your credit score by paying bills and reducing debt.
Assess the Need for Comprehensive and Collision Coverage
Collision coverage pays for repairs to your vehicle in case of an accident, while comprehensive coverage covers damage from non-collision events like theft or natural disasters. However, if you have an older car with low market value, it may not be cost-effective to carry these coverages. Assess the potential payout against the cost of your premiums to determine if it’s worth keeping comprehensive and collision coverage for your vehicle.
Adjust Your Deductible
Raising your deductible can lower your car insurance premium. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. However, it’s essential to choose a deductible that you can comfortably afford in case you need to make a claim.
By comparing auto insurance quotes with different deductible amounts, you can determine how much you might save with a higher deductible. Keep in mind that a higher deductible means you’ll be responsible for more upfront costs in the event of an accident.
Explore Usage-Based or Pay-Per-Mile Insurance
If you’re a safe driver who doesn’t log many miles, usage-based insurance or pay-per-mile insurance programs may be a cost-effective option. These programs use technology to track your driving habits, such as mileage, time of day, and driving behavior. By demonstrating safe driving habits, you may qualify for discounted rates.
Consider Insurance Costs When Buying a Car
Before purchasing a new car, it’s essential to consider insurance costs. Certain vehicles are more expensive to insure due to factors such as repair costs, safety ratings, and theft rates. Research the insurance premiums for different makes and models to ensure you choose a car that fits your budget.
According to Forbes Advisor’s ranking of the most and least expensive cars to insure, the Subaru Outback, Jeep Wrangler, and Honda CR-V tend to have lower insurance rates.
Getting the best rates on auto insurance requires careful consideration and comparison. By shopping around, taking advantage of discounts, adjusting coverage options, and being mindful of the type of vehicle you drive, you can secure affordable and reliable car insurance coverage. Remember to regularly review your policy and explore new options to ensure you’re always getting the best deal.
Contact us (859-781-7283) for more information or get a free quote!
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About Rollins Insurance
Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
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