If you're looking for ways to reduce your auto insurance premium, there are a few simple steps you can take. Increasing your deductible is one of the most common and effective ways to lower your payments. Depending on the insurance company, paying a higher deductible (the amount you pay out of pocket before insurance coverage takes effect, in the event of an incident) can make a big difference in your car insurance costs. It's worth comparing prices from different companies, as prices can vary significantly.
You can call companies directly or access information on the Internet, and your state's insurance department can provide comparisons of the prices charged by major insurers. Another way to save money is to choose a car that is cheaper to insure. Generally, standard-model vehicles that are less likely to be stolen and have the best safety features are the most affordable to insure. Additionally, middle-aged drivers tend to insure newer, nicer cars and include their children in the policy, which increases the average rate for this age group in general.
You can also get a discount by paying the entire term of the insurance in one lump sum instead of monthly installments. Before buying a new car, it's important to get an insurance quote and decide whether or not the cost of coverage fits your budget. If you want to reduce your own insurance costs, address as many personal factors as you can. Teen drivers usually pay more for car insurance than mature drivers because insurers consider them to be high-risk.
As a result, simply comparing prices could save a teen driver hundreds of dollars a year on car insurance. If you're retired, live close to work, use public transportation frequently, or don't drive much, you may be eligible for a low mileage discount. This discount is based on information in your credit report that predicts the likelihood that you will file a claim. You can also get a discount by choosing to receive your insurance documents via email. When you can no longer pay your current rate or no longer need certain types of insurance (such as collision or all-risk insurance), it's wise to reduce your car insurance coverage. Progressive offers a wide variety of discounts that can help you reduce your total car insurance bill.
Finally, contact your state insurance department to find out if they offer information on consumer complaints from the company. In California, Hawaii and Massachusetts, age won't have a direct effect on what you pay for car insurance. This information is not an insurance policy, does not refer to any specific insurance policy and does not modify any provision, limitation or exclusion that is expressly stated in any insurance policy.