Car insurance is a necessity if you drive a car. In fact, 49 out of the 50 states require you to have car insurance when driving, with New Hampshire being the only one that will let you drive without it. That’s why you might be looking for ways to lower that car insurance premium payment. These 4 tips will help you do it.
Don’t Drive A Nice Car
One reason that your insurance premium can be high is if you drive a nice car. If your brand new car gets a scratch down the side, you are more likely to use insurance to have it repaired than if you were driving a beat up car that is 10 years old. Foreign cars can also be more complicated to repair due to needing foreign parts, so your insurance premium will reflect that need.
Thankfully, car color does not have an impact on insurance premiums. It is a common myth that people who drive a red car are more likely to drive fast and get into accidents, causing insurance providers to increase their insurance rates. This is simply not true, and there has been no conclusive study done that proves it.
Get Multiple Policy Discounts
Do you have homeowners insurance, renters insurance, life insurance, or any other insurance policy with another provider? Combining multiple policies with the same company can end up saving you money by getting a discount. Ask your insurance agent about what policies can contribute to a discount, how big that discount will be, and then compare the premiums between all policies. Make the switch if your discount ends up being bigger than any potential increase in premium with the other insurance provider.
Pull Your Credit Score Again
Another factor that can impact your premium is your credit score. Did you get your insurance at a time when your credit was not so great, and you have recently paid off debts that have increased your credit score? Ask your insurance provider to pull your credit score again and see how it impacts your premiums.
Be A Safe Driver
Some insurance providers give discounts for allowing them to track your driving. A device will be put in your car that lets them see how fast you accelerate, stop, and if you break the speed limit. Having this kind of device won’t negatively affect your premium, but if you are a safe driver, it can lead to savings.
