How to Lower Your Car Insurance Premium by $500 This Year
Car insurance companies rarely reward loyalty. Here are nine proven strategies to cut your premium without sacrificing coverage.
Financial Writer
1. Shop Around Every Year
Insurance companies use complex algorithms that can result in wildly different prices for the same coverage. Rates vary by $500–$1,000 for identical policies. Use comparison sites annually — 15 minutes of effort can save hundreds.
2. Bundle Home and Auto
Bundling typically saves 5–25% on each policy. If you own a home or rent, get a combined quote from any insurer you're considering.
3. Raise Your Deductible
Going from a $500 to a $1,000 deductible often reduces your premium by 10–20%. Only makes sense if you have savings to cover the higher deductible in a claim.
4. Ask About Discounts
Good driver, good student, military, low mileage, vehicle safety features — insurers have dozens of discounts they don't proactively offer. Call and ask specifically what discounts you qualify for.
5. Maintain Good Credit
In most states, your credit score significantly impacts your car insurance rate. Improving your credit from "fair" to "good" can reduce premiums by 20%+.
Comments
No comments yet. Be the first to leave one!