The average American spent $1,190 on auto insurance in 2018 according to the latest report by the National Association of Insurance Commissioners. When trying to save costs on car insurance, it is important to know what factors affect your premium. As numerous factors affect the price of your insurance, you can make changes to your lifestyle so that you will have a lower risk of claims and in turn, have a lower car insurance rate. In this article, we go through some tips on how to reduce car insurance costs.
Insurance companies will sometimes offer a bulk rate for multiple vehicles as it means more business for them. For those that offer more than auto insurance, they might also give you a discount if you purchase a bundle with their other insurance types.
As you might already know, one of the factors the price of your insurance is calculated based on is your driving record. Having a history of previous accidents or violations increases your insurance rates as your provider might determine that you have a higher chance of making claims.
Improve Your Credit Rating
Other than your driving record, some insurance providers will also look at your credit rating to determine the price you pay for your insurance. The reasoning is that financial responsibility translates to responsibility in life and that includes driving. Whether or not your insurer does this, it is always good to keep a high credit rating.
Accrue Low Mileage
Many insurance firms offer better rates for drivers with low mileage. This is because driving less also means lower chances of getting into accidents. If possible, you should opt to use public transport instead to decrease your mileage.
Downsize Your Car
Research the exact rates for different vehicles before making your purchase. Typically, more expensive and bigger vehicles will attract higher premiums. Some insurance providers also offer discounts for hybrid or alternative fuel vehicles. Why not save the environment and your money at the same time?
Increase Your Deductibles
A deductible refers to the money that you pay out of pocket before insurance. So, the higher your deductibles, the lower the price of your insurance. Though this might be counterintuitive if you do not want to pay a cent for damages.
This works if you are considering making a move. In your process of researching where to move to, you might also want to take a look at the car insurance rates in that area.
Get An Insurance With K&N Brokerage
Does it seem like too much of a hassle to change up your lifestyle to reduce your car insurance costs? Then you should choose a good insurance company with attractive rates in the first place to avoid all that. At K&N Brokerage, we offer auto insurance that is value for your money. Our car insurance specialists will evaluate your needs and budgets to determine which policy is best for you. You won’t have to worry about high insurance costs with K&N Brokerage.