Although car insurance prices aren’t likely to stop increasing anytime soon, there are a few things that you can do to make sure that they’re as low as possible for you. Not only does this put extra money in your pocket (which we’re sure you could find use for!), but some practical work – like improving your credit score – can have other, long-term effects.
Shop around. Know your options – don’t just go with an insurance agent in the name of conformity or convenience. There are plenty of insurance vendors out there, both well-known and local, that will sell you their recommendations. Ask your friends, family, and neighbors what works for them. Take notes, and make comparisons between the big guys and the smaller, local insurance agencies. You may be surprised at what you find.
Know what your needs are. The squeaky wheel gets the grease . . . or a lower insurance premium. Don’t be afraid to ask questions of an insurance agent. If there’s an aspect of your policy that you don’t understand, or if you aren’t sure of its necessity, ask! For instance, do you need full coverage? If you have a brand new car, the answer is yes – and it may even be required by state law. If you drive a beater, you may be able to reduce costs by removing unnecessary coverage. Again, knowledge is power. Learn as much as you can about your car and what your state requires. For example, in the state of Indiana, the minimum liability limit is set at $10,000 for property damage, compared to Ohio’s minimum of $25,000.
Improve your credit score. Paying down debt and maintaining a financially responsible record (at least from a creditor’s perspective) will affect your insurance premium, especially at renewal time. If your insurance carrier can see that you’re able to pay down debt, many of them will offer a reduction in premium in exchange for your continued business. Several carriers also offer discounts for staying with them. However, don’t be dissuaded from shopping around, at least on an annual basis.
While it may not happen overnight, taking proactive steps toward reducing your auto insurance premium could potentially save you hundreds of dollars this year. So why wait?