Most states require car insurance. Given that it’s an unavoidable expense unless you happen to live in Mississippi, New Hampshire, or Virginia, you might as well find ways to save. You may not realize it, but there are multiple quick and easy ways to pay less for your car insurance without necessarily changing your coverage or your carrier. Here are some of the easiest tips you can use to lower your rate with one phone call:
Ask for the discount. You likely won’t get one without asking. Insurance carriers don’t want you to leave, but unless you give some indication you’re having trouble affording payments, they have little incentive to lower the recurring premiums you’re paying them unless you contact them about it.
Keep your employment information up to date. Your job industry, title, and employment status affect your perceived risk to the company, both in terms of job stability (ability to pay), as well as secondary factors like work environment, driving habits, distance to work and daily commute, not to mention personality traits (wreckless versus conscientiousness).
Mention any club memberships, associations, or other statuses. Insurance companies often partner with Alumni associations, trade groups, and other organizations. Chances are you are a member of a group that your insurance carrier provides a discount to, and these can stack (to a certain extent). If your insurance provider does not have a relationship with many groups you belong to, you may wish to check out other auto insurance companies. Other providers may be able to offer better discounts for you in this category.
Update your education information. Insurance carriers like to offer “good student” discounts to current students who may otherwise have higher rates due to their young age and relative inexperience driving. Higher education attainment also trends with lower risk for auto insurance, so you’ll see more discounts if you have recently obtained a bachelor’s, master’s, doctoral or professional degree.
Authorize a credit check. If your credit has improved since you were last given a quote, you may wish to authorize a credit pull. Insurance carriers like to give discounts for any indication that you are well-equipped to pay (and lead a lower risk lifestyle, as is characteristic of those with better credit scores).
There are many quick and easy options to lower your auto insurance premiums. The rate you are paying now is not necessarily the lowest rate you can get from your carrier. Without a lot of effort, you can quickly save money over the course of the year by cutting your insurance rates. The more information the insuranc company has about you, the lower their uncertainty about you and the lower your rates! Bonus tips below:
Ways To Change Your Car Insurance For Lower Rates
Price shop. Compare other insurance companies for quotes, and either pick the lowest initial quote, or if they are close, try to avoid switching by calling up your current carrier and having them match the price. Apply other previous tips to lower the rate even more at either of the companies.
Increase your deductible. A higher deductible means more cash out of your pocket before the insurance company is willing to pay up in the event of a claim, but gives you the freedom to pay a lower rate. While the point of insurance is to avoid risk and uncertainty, if you are a safe driver or need to lower your expenses to free up more cash flow in the short term, you may wish to increase your insurance deductible.
Bundle and save. A lot of insurance companies will not hesitate to tell you about other insurance products they offer. Sometimes you will get the best rate by shopping for individual insurance products individually, but often you may find it easier to deal with one company. If you already need multiple insurance policies (renter’s, homeowner’s, etc), you might as well try to capitalize on it. Call up your car insurance provider (and others!) and find the lowest combined rate that you can get.
With these extra tips, you can save on your car insurance with a little extra effort, at the cost of your time/research or your plan’s features. Add that to the quick and easy savings you can get from one phone call asking for discounts with the first set of tips, and you have a huge amount of savings! Happy shopping!