How to Lower My Auto Insurance Rates

Many people would like to pay less for auto insurance but don’t know what they need to do to get the lowest auto insurance rates. You may think you need to live with high rates because of a bad driving record or dinged credit report. However, there are a few simple things you can do to lower your car insurance rates, regardless of your history or driving record.

Steps to Lowering Your Car Insurance Rates

First, shop around. Auto insurance prices can vary greatly from company to company, so it pays to get at least three quotes from different companies. You can call the companies directly or get a quote online through various websites. Go Insurance Rates offers you multiple auto insurance rate quotes for free in only a few minutes!

Opt for a higher deductible. If you don’t know what your deductible is, check your policy and find out. Chances are you were sold a very low deductible, such as $200 or $300. Low deductibles are great, but if you are comfortable with the idea of shelling out $1000 in case of an accident, then you can save yourself a whole lot up front: you’ll be paying up to 40% less a month for car insurance.

Look for group rates. Are you a member of a professional organization, alumni group, or union? You may be eligible for a group rate through one of these associations.

Consolidate all your policies with one insurer. Some insurers will give you a break on car insurance rates if you purchase more than one type of insurance, or if you have more than one vehicle insured by the same company.

Finally, is your car an old clunker? If your vehicle is more than 7 years old, do the math and see if your car is worth less than 10 times the insurance premium. If it is, you might consider taking on a more basic policy that doesn’t include collision or comprehensive insurance.

Remember, though, that it is never a good idea to go without insurance entirely. Aside from being illegal in most states, if you ever are in an accident, you will be liable for any damages not only to your own car, but also to the other party’s car, property or person. Also, you may also want to rethink lowering your insurance rates if it will cost you in other areas.