YOU ASK:

How to lower car insurance rates?

WE ANSWER:

There are many things you can do in an effort to lower the cost of your car insurance premiums.

  • Add safety devices to your car. One consideration when setting premiums would be the likelihood of theft for that particular model and make, as well as the risk of damage or injury. Be sure to tell the insurance company that you have installed devices that will lower the risks - such as anti-theft devices, daytime running lights, airbags or automatic seatbelts. Some insurance companies give discounts for these.
  • Go for higher deductibles. This is the standard and easiest way to lower your premiums. For instance, opting for a $500 deductible instead of $200 will result into a 15 to 30% reduction of your premiums. If you opt for $1,000, your premiums can be decreased by 40%. Of course, you have to ensure that the deductible you choose is something you can afford, something you can readily have in case you get involved in an accident.
  • Be a good driver. A good driving record will mean good car insurance rates. In addition, you can also get discounts for attending safe driving courses.
  • Be a good borrower. Your credit standing or record is also important. Again, a good record for this will mean good car insurance rates. Pay your bills and loans on time.
  • Buy multiple policies from the same insurance company. If you buy not just your car insurance for your car but also your homeowners insurance and car insurance for your other cars, your insurance company can give you a discount.
  • Opt to remove collision and comprehensive cover for older cars. For old cars, the fair market value will have depreciated considerably. A rule of thumb will be to drop collision and comprehensive cover if the value of your car is less than 10 times what you are paying in premiums.
  • Ask for low mileage discounts. If you don't spend that much time on the road, driving (particularly if you car pool), you can ask your insurance company to give you low mileage discounts.
  • Seek for additional discounts. You can look into asking discounts for:
    • Being a long-time customer of the insurance company
    • Teenagers who have good grade
    • Drivers who are retired and are 50 years old and above
    • Drivers who have had no driving violations for the last three years

Be sure to get quotes from three or more insurers, so that you can make a more thorough comparison of the premiums as well as the benefits offered.

Also, when choosing which insurer to go to, be sure to balance price with company reputation and stability. You will want affordable premiums, but you also want to work with a company that has a good reputation for paying their claims promptly and fairly.

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