8 Ways To Lower Your Car Insurance Premiums

8 Ways To Lower Your Car Insurance Premiums

So you’ve been saving for a few months now to get your dream car. With your target threshold just around the corner, you feel elated – your dream car will soon be here. But then you remember the car insurance!

Want to have lower car insurance premium? Who doesn’t! Here are a few simple hacks that could help you get the best possible deal.

1. Think Again Before Buying That New Car

It’s easy to fall in love with a car and set out to buy it long before you consider insurance costs. However, your car make and model can have profound effects on your insurance bill. You might be able to make the purchase with all of your savings over time. What next? To be sure that insurance costs don’t render you bankrupt, evaluate your car before purchase.

Generally, new cars, sporty cars, and expensive cars cost more to insure than old, utilitarian and cheap vehicles. Make a shortlist of cars and compare the rates of each before giving it a go. Note that rebuilt cars, though initially cheap, may end up costing you a higher insurance premium. Check out second-hand cars to be sure there are no outstanding debts on them.

2. Compare Quotes.. It Pays To Shop Around

This seemingly common sense hack might be easily forgotten when you already have your mind fixed on one provider. It pays to shop around. There are hundreds of companies out there willing to offer you great deals, and there are more than a few comparison websites to help your search. So take the time out and compare quotes from different companies on the same vehicle to find the right policy for you.

A note of warning when shopping around. Some quotes are smaller than others not because they are better, but because they offer less cover. Be sure to compare only similar offerings when considering price differences.

3. Increase Your Deductibles If You’re A Safe Driver

Most of us are safe drivers that rarely ever get involved in accidents of our making. If you are one of those, why not take advantage of it? Bump up your deductibles in cases of an accident claim against you. As you do this, your premium drops. For instance, raising your deductibles from $250 to $1,000 can drop your premium by 25 – 40%.

4. Be Careful With Your Job Title

Car insurance companies are very specific on job titles when applying for an insurance policy. While this might seem a bit irrelevant, nothing is actually irrelevant in the eyes of the insurance company. For instance, music teachers generally pay a higher premium than teachers. But a music teacher is a teacher, so no reason not to simply have your title as “teacher”.

Likewise, unemployed folks pay a higher premium than those who identify themselves as a stay-at-home parent (husband or wife) or retirees. A little more care with your title can save you a bunch on your premium charges.

5. Drive Less? Pay Less!

Don’t drive much? There’s a discount for you based on the policy of many insurance carriers. Why not take advantage of it? If you have a short commute, or you regularly participate in the office vanpool system, thereby reducing your daily drive hours, you can find out how this helps you. Most companies have reduced rates for low mileage score vehicles.

6. Store Your Car Inside Your Garage

Many of us are guilty of this one. We fill up our garage with so much junk and never to be used stuff, and end up leaving our vehicles out at night. This portends higher risk for the insurance company and results in a higher premium for you. Forget the hassle that goes with putting the car in the garage every night and consider the hundreds of dollars it could save you on car insurance. Don’t have a garage? Go get one!

7. Main Driver vs Possible Driver

You can add more than one individual in your possible driver list. And this could be a good thing. For instance, adding an experienced, no claim driver to your insurance policy can lower your premium. Likewise, adding a young, inexperienced driver like your kid can significantly increase your insurance costs.

If you are buying the car for your kid, though, be sure to list them as the main driver. While listing yourself (a parent) as the primary driver of the vehicle could help lower costs, it is illegal to do that if you are not actually the primary driver.

8. Take Advantage Of Multi-Policy Discounts

Most carriers offer discounts if you have more than one policy with them. By combining your home insurance policy, car insurance policy, tenant insurance, RVs, motorcycles, etc. into one with the same carrier, you qualify for a multi-line discount. Be sure to compare rates, offerings, and benefits before committing to this, though.

About Edwin

Edwin is a marketer, social media influencer and head writer here at Save The Bills. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

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