There are many factors that affect car insurance rates.Â Some of them you won’t have any control over, but others can be changed in order to reduce the overall premium you pay each month for your car insurance.Â Below are 12 tips for reducing the cost of carrying car insurance.
- Safe Driver
Obeying the traffic laws is the best way to save money on your car insurance. By presenting yourself as a low risk, you are rewarded by lower premiums.
- Vehicle Safety
Shop for the car with the most safety features. Things like Electronic Stability Control, or side and curtain air bags can all save money on your insurance.
- Update Your Policy
Look over your insurance policy and eliminate riders that you donâ€™t need.
- Change Your Deductible
The more you are willing to pay out of pocket in the form of a deductible, the lower your premiums will be. Be careful not to set your deductible too high, or you wonâ€™t be able to pay the deductible so the rest of the repairs can be made.
- Driver Improvement
If you take a voluntary driver improvement course, you can be eligible for a discount on your car insurance.
- Where You Live
Your zip code tells the insurance company a lot about the risks of insuring your car. If you live in a high crime area, your insurance rates will probably be higher than living in a safer location.
- Where You Park
Where you park your car at night affects the risk of insuring the vehicle. If you park on the curb, for instance, your rates will be higher than if your car is parked in a private garage.
- Customer Loyalty
Customers who have stayed with the same company for several years are eligible for customer loyalty discounts.
- Take Responsibility
If you pay for minor damages to your car, you can avoid filing claims, and that means your risk goes down over time.
- Age and Risk
Drivers under 25 years of age are riskier to insure than drivers over 25. The best advice for young drivers who still live at home is to get added to your parentâ€™s policy rather than get a policy of your own.
If you have a Bachelorâ€™s degree or better, you probably qualify for a discount related to your education level.
- Shop Around
Compare the rates of your favorite insurance companies online and look for the ones that offer more discounts or enhanced policy coverage. You can shop for insurance online 24 hours a day and most sites will even allow you to apply for a new policy online as well, saving you more time and inconvenience.