4 Tips For Lowering Your Car Insurance Premium

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Car insurance is essential for every driver to have, but you don't always have to be stuck with a high premium. Determining what you should pay for car insurance involves several factors, but there are a few tips that can help you lower your rates no matter what company you are insured for. Here are four ways you can lower your car insurance rates.

Choose New Vehicles Carefully

One of the first things that an auto insurance company will consider is the make and model of your vehicle. Different vehicles will have higher or lower safety ratings, and will be more or less attractive to thieves. Keeping safety first in mind when buying a vehicle will help you find one that will be cheapest to insure.

Examples of safety features to look for when buying a vehicle include anti-lock brakes, anti-theft alarms, and rear-view cameras. Some vehicles even have advance collision-avoidance sensors that can detect obstructions in front of the vehicle and stop automatically, match cruise control to the flow of traffic, or slow down when a vehicle ahead is changing lanes.

Request Higher Deductibles

Most car insurance policies come with a deductible, which is the amount that you must pay out-of-pocket for repairs before your insurance coverage begins. Many people try to find car insurance policies with low deductibles so that their insurance will cover most of the costs in the event of an accident. However, you should keep in mind that auto insurers make up for customers' low deductibles by charging a higher monthly premium.

When you purchase auto insurance, you should consider requesting higher deductibles from any company that you consider. While you should never request a deductible that is more than you could pay if you are in an accident, increasing your deductible a reasonable amount can pay off in the long run by significantly lowering your premium.

Maintain Good Credit

Many car insurance providers analyze your credit history to create a credit-based insurance score. This value is used by insurers as another metric to predict how likely it is that you will be in an accident. Insurers can use this as an effective prediction tool because some studies have shown that there is a correlation between low credit scores and increased frequency of car insurance payouts.

If your insurance provider uses credit-based insurance scores, you can reduce your premiums by maintaining a good credit score. Keeping a low balance on credit cards, paying bills on time, and limiting applications for new credit cards are all factors that could unexpectedly be reflected in your car insurance premium.

Look for Discounts

If you take the time to research each insurance provider before you buy, you may find discounts that you didn't know you qualified for. For example, you may be able to get a discount on your car insurance if you are a student or a senior. Applying for a student discount on your car insurance can also be a great motivator, as they are often based on your grade point average.

Insurers know that the less time you spend on the road, the less likely you are to get in a car accident. If your average annual mileage is low enough, you may qualify for a low mileage discount. Changing your driving habits, such as by carpooling with a coworker, may be enough to bring your mileage below this threshold.

If you get multiple quotes before settling on an insurer and know a few money-saving tips, you could save hundreds of dollars per year on your car insurance. Use these tips to get the lowest possible car insurance premium.

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24 February 2016