Whether you’ve just bought a new car or are shopping around for a new policy, you want to save money on insurance. Car insurance companies offer a variety of deals and policies, so how do you save the most money? Follow these tips to get the best rates.
Be a Safe Driver
When you get into an accident or are issued a ticket, your insurance premiums can rise significantly. To help combat this, you should take advantage of traffic schools to lower or delete the points on your license. By keeping your points down, you can save hundreds of dollars on your policy over a few years.
Don’t Drive Something Flashy
Fancy sports cars might look pretty and drive fast, but they’re expensive to insure, especially with added comprehensive and collision policies. If you want to cut back on your car insurance rates, look for a new car with a safer reputation. For example, minivans and SUVs cost less to insure than sportier models.
Only Purchase the Insurance You Need
When buying policies from car insurance companies, don’t purchase coverage that you don’t need. If your car is a junker, you probably don’t need collision or comprehensive coverage because the car isn’t worth as much as you’d be paying out. Remember, the insurance company never pays you more than the car is worth. Instead, put that extra money in a savings account and pull it out when you need repairs or a new vehicle.
Raise Your Deductible
Your comprehensive and collision coverage can be made cheaper by raising the amount of your deductible. You only pay the deductible if your car needs repairs, and by increasing it from $500 to just $1000, you can save a couple hundred dollars per year. This varies by insurance policy and company, so be sure to compare rates before deciding.
Fix Your Credit Score
In many states, your credit score is taken into account when drawing up your policy. It sometimes counts even more than your driving record. To make sure you’re getting the best rates, your credit score should be as high as possible. Raise it by making all your credit and loan payments on time, not opening extraneous credit accounts and keeping your spending balance lower than your credit limits.
When purchasing auto policies from car insurance companies, you want to be sure you’re getting the best rates. In addition to looking for discounts, you should take the above tips into consideration so you can pay the least amount possible for good insurance.