1. Reduce Your Mileage
One of the major costly elements of car insurance is the number of miles driven during the year. It is because the more miles you drive each year, the higher are the chances of you getting into an accident. According to United States Department of Transportation Federal Highway Administration, Americans drive 13,476 miles on average per year. Find the full list here.
Therefore, there are special discounts on car insurance for those who drive less than average. So if you do not drive much, then it’s worth checking to see if your insurer offers this a low-mileage discount.
2. Combine your policies
If you and your partner have the same insurance plan, then you can consider adding another policy to reduce your save your money. Whenever you combine several policies from one insurance company, there is a good chance your insurer will give you a discount on that. You can actually save more if there are more than one drivers in your family and one of them if a teenager with a good GPA in school. In fact, by combining various policies from one insurance provider, you can save from 10%-20% on each policy.
3. Check Other Car Insurance Discounts
If you want to reduce the cost of your car insurance, you can also check other car insurance discounts that are offered by your insurance provider. Those discounts are usually offered to people with a low-risk lifestyle such as:
Students with good grades
If you are a high-school or college student with at least a B grade average, then you are typically qualified for some type of discount. At 1&Only Insurance Services, you will receive an extra 15-20% discount towards their auto policy if they are full-time students with good GPA and up to age 24.
Drivers with good driving history are usually qualified for some type of discount on their car insurance. The percentage might vary depending on your insurance provider.
Take Defensive Driving Class
Another easy way to money on your car insurance coverage is to take a defensive driving class. Many insurance companies give a monthly discount to those who complete and show proof of a defensive driving course.
There are many other small discounts available on the market, so feel free to ask your insurance agents whether you qualify for any of them.
4. Drive Safely
When deciding your risk level, most insurance companies will look at your credit score to understand your driving habits. Your credit score can actually have a big impact on the price of your car insurance. So the best way to avoid penalties and reduce your car insurance price is to drive safely. Here are some of the most important pointers:
- Keep Your Speed Down
- Stay Sober
- Stay Awake
- Avoid Distractions
- Take a Driving Course
5. Set the right Deductible
One of the easiest ways that you can lower the monthly premiums of your car insurance is to raise your policy deductible. This will directly lower your premiums but still cover you in case of a major accident. So by setting the right deductibles for your policy, you can save 15% to 30%. However, it is also essential to make sure you can afford to pay that cost in case something happens.
If you want to learn more about car insurance, read our other blog posts here.