6. Increase Your Deductibles
Depending on the policy, deductibles typically range from $250 to $1,000. The catch is that, generally speaking, the lower the deductible, the higher the annual premium.
Conversely, the higher the deductible, the lower the premium. Ask your agent how your premium might be affected if you raised your deductible.
It may make the annual premium better by several percentage points and put some money back in your pocket, or the savings may be minimal.
If you are reluctant to file smaller claims to avoid the risk of pushing up your premium, raising the deductible may be a particularly sensible move.
7. Improve Your Credit Rating
A driver’s record is obviously a big factor in determining auto insurance costs. After all, it makes sense that a driver who has been in a lot of accidents could cost the insurance company a lot of money.
However, folks are sometimes surprised to find that insurance companies may also consider credit ratings when determining insurance premiums.
8. Consider Location When Estimating Car Insurance Rates
9. Review Your Coverage
Dropping certain types of coverage can be a slippery slope. After all, nobody can predict if or when an accident will occur.
However, if you are driving an extremely old automobile that’s on its last legs, it may make sense (depending on the cost, your driving record, and other factors) to drop collision or comprehensive coverage.
The reason for this is that were the vehicle to be involved in an accident, the insurance company would likely total the car. If the value of the car is only $1,000 and the collision coverage costs $500 per year, it may not make sense to buy it.
10. Get Discounts for Installing Anti-Theft Devices
Individuals have the potential to lower their annual premiums if they install anti-theft devices. GEICO, for example, offers a “potential savings” of 25% if you have an anti-theft system in your car.
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Your insurance company should be able to tell you specifically which devices when installed, can lower premiums. Car alarms and LoJacks are two types of devices you might want to inquire about.
If your primary motivation for installing an anti-theft device is to lower your insurance premium, consider whether the cost of adding the device will result in significant enough savings to be worth the trouble and expense.
