A recent study found that there are 18 million Americans that don’t have car insurance because they can’t afford it. Insurance for a car is expensive; however, what if we said it didn’t have to be that way? There are many ways to decrease the cost of insurance, so you don’t have to pay an arm and a leg for coverage.
That’s why we’ve investigated all you need to know about reducing auto insurance costs. That way, you can pay less but receive the same great benefits.
Now, are you ready to get started? Here’s a quick look at how to decrease your auto insurance rate:
Increase Your Credit Score
If you don’t know, your credit history is seen as determining the likelihood of filing a claim. Thus, in most states, insurancers consider your credit score when deciding on a rate. In fact, drivers with no credit or a low credit score pay 67% more than those with good credit scores.
If you want to lower your insurance rate, try increasing your credit score. You can do so by making regular, on-time payments, decreasing your credit utilization rate, and limiting new credit lines. Once your credit score goes up, you should see a significant reduction in your insurance rate.
Use Multi-Driving Discounts To Advantage
When you get a quote for one vehicle, chances are the insurance company will give you a higher rate than if you were to insure multiple vehicles. Insurance companies want more business, so they will offer you a discounted rate to get you and your family’s business.
To qualify for the deal, two or more drivers must live at the same residence and either be related by marriage or blood.
If you have a teen, you can expect to pay more. However, if the student has grades of an A or B, you may be able to get a good student discount on their coverage. Good student discounts range from 1% to 30% off. To qualify, you’ll need to show the insurance company proof that your teen has good grades and can maintain them.
Be A Safe Driver
Being a safe driver means you don’t get into accidents, don’t have a speeding ticket, or have any distracted driving incidents. By being a safe driver, you’ll show the insurance company that you are less of a risk, and in return, they will lower your rate. Insurance companies often give drivers a 20% to 30% discount for being safe drivers.
Not to mention by being a safe driver, you’ll make your car last longer. So it’s great for your wallet both in insurance costs and saving money at the shop.
Decrease Your Auto Insurance Costs Today
To reduce your auto insurance costs, follow these three steps. First, improve your credit score, use multi-driving discounts, and finally, be a safe driver. Completing these steps will significantly lower your rate without losing your auto benefits.
So what are you waiting for? Lower your car insurance premium today. Now, for more information about cars, visit our blog.