How to Reduce Your Auto Insurance Premium

Jul 8, 2020 | Personal Insurance

Owning a car takes a lot of responsibility including the maintenance to enhance good performance and other expenses you might encounter as you drive along. What makes it more pricey is the additional cost you have to pay for auto insurance. However, it is a very wise investment to purchase this type of insurance as it would save you from further headaches in the future. 

Are you thinking of ways to decrease the amount of your auto insurance premium? Of course, who wouldn’t want to achieve that? Car expenses get higher each day and most of the time you cannot avoid those spendings especially if it will involve proper maintenance of your vehicle. Hence, it would play a big role if you get to pay lowered rates. We come up with these tips you can apply to obtain a reduced premium.

Tips To Minimize The Cost Of Your Auto Insurance Premium 

Cutting down the price of your auto insurance needs these tips. There are many things you can do to keep your auto rates at the lowest level possible.

  • Review your deductibles. Your deductible is what you agreed to pay out of your pocket even before your insurance provider acts on your claim. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your Collision and Comprehensive costs by 15 to 20 percent. 

You may also increase your deductible if you have a record of good driving for years and no claims too. However, if you are prone to accidents and claims after that, you better think twice before you raise your deductible. You might spend a big sum of money if another problem arises. 

  • If you have teen drivers, encourage them to get the best grades possible in school. Most major insurance companies offer a discount for students in good academic standing. If they’re going to pass a driver’s education course, then this is another good factor that will reduce your premium. It is also safer to insure your teens under the parents’ policy rather than have them insured on a separate one.
  • Select a safe car. Check out which cars are popular with thieves and avoid them. Choosing expensive cars or sports cars to increase your premium. Collision coverage increases depending on the vehicle’s value. Also, particular vehicles are charged with bigger insurance costs. 
  • If you have a vehicle that is 10 years or older consider carrying liability only. You may opt to remove the collision coverage in your policy that covers the damage you caused to your car because it takes a big part in your insurance premium.
  • Be a safe driver. The more accidents and tickets you have, the higher the premiums will be. Your auto insurance would earn a minimum cost if you will abide by the rules of the road and avoid accidents. In case you already have violations from the past, do not add more. Some states drop moving violations after three years so be careful about driving. 
  • Purchase a car with an alarm and other safety gear. Having an anti-theft car alarm system can be used by police to track a stolen vehicle and try to recover it from thieves. It has a rate of 90% recovery that provides car owners with peace of mind knowing that if their vehicle is stolen, they have the best chance of getting it back. Installing safety gear like airbags, anti-lock brakes, and automatic seatbelts can also qualify for lowered rates.
  • Be loyal but also keep an eye on your renewal rate. Many auto insurance companies offer loyalty discounts if you stay with them over time. But if you see that the discount isn’t keeping up with your renewal rates, we do recommend working with a local independent insurance agent so that they can shop your rates for you with several carriers.
  • Participate in your carrier’s driving telematics program. Safe driving is always a concern for insurance carriers. Carriers want to provide additional discounts for your good behavior. To maximize your savings with telematics, things like harsh acceleration or braking and avoiding nighttime driving will help. Most insurance companies offer telematics savings between 5%-30%.
  • Improve your credit score. Although carriers don’t pull a true credit score, they pull something called an insurance score. Insurance scores are a rating and used by insurance carriers to determine your likelihood of you filing a claim and they also use this in deciding about your premium cost. The best way to improve and maintain a good credit score is to pay bills on time.
  • Leap over monthly bill payment. Choosing the monthly payment mode seems lighter to handle than paying once or twice a year with a big amount of money. However, you may not be aware that paying monthly has extra charges. You may opt to pay annually or semi-annual to reduce costs on your auto insurance.
  • Bundle your policies in one insurance carrier.Combining all your policies in one insurance company gains discounts. You may insure all your vehicles like your RV and trailers in one policy and may choose to buy homeowner’s insurance or life insurance from the same company.
  • Grab senior discounts. Seniors, particularly 50 or 55 years old or older, may be eligible for discounts. You must check with your insurance carrier though if they offer such a discount for seniors or if by chance after you undergo a defensive driving class.
  • Your profession might give you a good deal. Teachers, military, and other members of the professional group may be entitled to insurance discounts. You may check with your carrier if your profession will get a deal for discounts and you can ask your employer as well. 
  • The shorter you travel, the more you earn a lower premium. Insurance companies prefer to give discounts to people who drive less. Simply because less travel or commute makes fewer claims from accidents you might encounter off the road. 

So, going to work at a short distance from your home has a big advantage when it comes to your auto insurance premium. People working from home got the most decreased premium since they work inside their house without the hassle of commuting.

Take a look at your situation and your assets and review your policy to know if you qualify for discounts. Reducing your auto insurance premium needs a little research and inquiry from your insurance provider. They will surely provide answers to your questions that will be in favor of you. You might be able to pay less for your car insurance premium and not even know it. So it pays to connect with us to review your insurance needs.

Contact us today regarding auto insurance in Denver, Colorado, as well as for other insurance needs. We can help you.

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