Posted on: 11 December 2020
In many states, your monthly car insurance payment can rival the loan payment required to purchase a vehicle. If you find yourself in a state with high insurance rates, there are many things you can do to keep your insurance rates reasonable.
Smart Way #1: Purchase A Reliable Used Car
If you want to keep your insurance rates down, you need to examine the car that you drive. To keep your insurance rates down, driving an older car can really help. However, you don't want your car to be too old. A car that is too old and lacks modern safety features could be more expensive to insure. Instead, look at cars that are about a decade old — these cars have lots of modern safety features but don't cost as much to cover.
When you look at vehicles, consider one made in the United States. Oftentimes, foreign vehicles cost more to insure. This is more than likely due to the higher cost for replacement parts and the higher labor costs many repair shops charge on foreign vehicles.
Also, stay away from flashy cars, such as sports cars with powerful engines, as it takes powerful money to pay the insurance for those types of vehicles.
Smart Way #2: Be a Safe Driver
Next, you need to make sure you are a safe driver. Driving safe, and avoiding accidents and tickets, can help keep your driver's insurance premium rates down. When you get into accidents and accumulate tickets, your insurance doesn't just increase for a few months, your rates increase for a number of years. These actions have long-term consequences, which is why driving safely is so important.
Smart Way #3: Keep That Deductible Up
Saving up money so you can afford to pay a larger deductible if you get into an accident is actually a great way to save some money. Signing up for a larger deductible is one of the easiest ways to reduce your insurance premium.
If your deductible is currently $250, call your insurance company and find out what your rates will change if you increase your deductible to $500 or $750. You may find that increasing your deductible will save you more money in your premium over time. Put that extra money into your savings, so you have the money to pay your deductible should you need to, while enjoying lower insurance rates over the long run.
Smart Way #4: Always Shop Around
Each year, you should shop around for better insurance rates. Each company figures out rates slightly differently, so shopping around each year and comparing rates is a great way to save money.
When it comes to saving money, purchase a car that isn't going to drive a high premium insurance rate, be safe on the road, keep your deductible up, and always shop around to enjoy great insurance rates.
To learn more about auto insurance, reach out to a local insurance provider.Share