If you own a car, you must have insurance to drive it. Insurance costs can get pretty hefty, especially when you finance your vehicle. However, you can take some steps to reduce your premiums each month. Here are some tips to reduce your insurance rates this fall.
1. Work On Your Credit Score
One way you can reduce your insurance cost is by working toward raising your credit score. Credit scores directly affect insurance rates these days, and you can relieve yourself of some of the burdens by paying your bills on time, disputing inaccurately reported accounts, and reducing the number of inquiries you make. That should make your credit score rise, which will, in turn, decrease your insurance rates. You should notice a premium decrease when it comes time for you to renew your insurance if you have a better credit score.
2. Add Safety Features
Many insurance companies give their policyholders discounts for having safety features on their cars. Examples of qualifying safety features include anti-lock brakes, airbags, electronic stability control, etc. You may qualify for a discount if you install a seat belt pre-tensioner, too. If an accident occurs, a pre-tensioner will keep you firmly planted in your seatbelt.
Research to see what you can add to your car to give yourself a more reasonable insurance rate. Just make sure you choose aluminum instead of heavy steel for parts. The U.S. Department of Energy says that using aluminum instead of heavy steel components can reduce the weight of your vehicle by between 10 and 60%. Putting in an aluminum driveshaft instead of steel can eliminate up to 20 pounds. Reducing the car’s weight can take some of the burdens off the engine and ultimately lead to a longer motor life.
3. Raise Your Deductible
Another thing you can do to decrease your monthly automobile insurance expense is raise your deductible. The deductible is the amount of money you must submit before the insurance policy kicks in and pays some of the expenses to repair your vehicle. They can range from as little as $250 to several thousand dollars. Your deductible amount directly affects the premium, so you can play with it a little to make your monthly payment more comfortable. However, don’t make it so high that you can’t afford it.
4. Keep Your Vehicle Covered
Another way to reduce your insurance premiums is to keep your vehicle protected. In 2020 alone, there were over $40 billion in insured losses due to storm damage. If your vehicle suffers damage because it wasn’t covered by your garage or other safety features and you file damage claims regularly, chances are your premiums will go up.
5. Change Providers
Checking other providers and comparing is a good idea if you’d like to reduce your monthly insurance costs. You can save hundreds of dollars by switching companies or getting a promotion from being a new customer. It’s wise to keep your eyes open for excellent deals. You never know when you might catch a break.
6. Use Your Memberships
You can also use personal memberships to get a nice discount on your car insurance premium. For example, you can get a percentage off your bill by being a member of certain credit union. Sometimes, being affiliated with a specific employer can also get you a discount. You might have to investigate to figure out which one of your memberships can work out for you in that way.
7. Change Vehicles
Finally, if your vehicle isn’t in the best condition or the model is no longer working for you and your family, it may be a good idea to change vehicles entirely. According to Zippia, in 2021, 9.2 million U.S. vehicles were produced, and many of them are safe choices for a new car. Certain types of vehicles may result in higher insurance premiums, such as Dodge, Tesla, and BMWs. Switching the type of car you drive can bring your premiums down.
You’re now armed with some practical tactics to reduce your monthly auto insurance premium. Try some of these methods to see what discounts you can get on your automotive coverage. You might be pleasantly surprised by your future bills.
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