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  • Writer's pictureFarmers Mutual SC.

10 Tips to Trim Your Car Insurance Premium

We understand the need to cut a few expenses whenever there is an opportunity to do so. However, the important thing is to do it in a way that you don’t lose the quality of service.

Before we jump into the ways to cut your insurance premium, let’s see the most common factors that determine your cost:

  • Make and model of car- the cost of insurance is higher when you own high-end models and luxury vehicles

  • Type of coverage- if you choose to have comprehensive insurance, it will provide greater coverage but also cost more

  • Location of the car- it’s very important where you drive your car; populated cities, highways, mountains, higher crime rates places, etc. The geographic location can increase insurance premium

  • Car history- if you haven’t had claims in the past, it will help you earn a no claim bonus and may reduce premiums

  • Car modifications- if you made any modifications to a car, there are chances of incurring a greater loss if the vehicle gets damaged.

Now, are you wondering how to buy the best car insurance without going over your budget? Here are some simple tips to cut down car insurance cost

1. Install Anti-Theft Devices in Your Car

The cost of the policy is determined on the basis of the liability that a car poses. Hence, the greater the liability, the higher the insurance premium. Anti-theft devices will lower your premium. Gear lock, anti-theft alarm, steering lock, etc. reduce the risk of your car getting stolen.

2. Avoid Unnecessary Car Modifications

Depending on your insurer’s rules, some types of vehicle modifications can lead to canceled policies or denied claims. Think twice before making a performance-enhancing modification or an illegal modification. People like to modify their cars and features. With those features, the value of the car increases and therefore insurance price as well. To avoid any run-ins with the law or your insurer, do your research and make sure your modification of choice is legal where you live and drive before installing it.

3. Raise Your Voluntary Deductibles

Almost every plan comes with deductibles. If you agree to pay a share of the claim amount, you reduce liability on the insurer. Simply, there will be a lower premium. Make sure to opt for a deductible that you can afford to pay.

4. Avoid Minor Claims

In order to keep your premium low, don’t claim minor damages to your car. Those that are not expensive to repair will only hurt your No Claim Bonus and you won’t be able to save on renewal premiums. NCB can help you earn a discount of 50% over a period of five years.

5. Pay As You Drive Car Insurance

Not all people drive their cars every day. If you use your car less than average drivers, go for pay as you drive car insurance. Driving less can lower your premium. It will count your mileage and charge based on how much you actually drive.

6. Avoid Policy Lapses

Every insurance policy has an expiration date. Don’t forget to renew it before it expires. If it does, the car policy lapses. This shows the carelessness and unreliability of you as a car owner and you can be charged with a higher premium on a lapsed policy.

7. Maintain a good credit record

Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies.

Research shows that people who effectively manage their credit have fewer claims. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible.

Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

8. Downsize Your Vehicle

The thought of buying a new SUV may sound exciting, but insuring a 5,000 plus pound, top-of-the-line vehicle can be more expensive than insuring a safer smaller lower-cost commuter car. Some insurers may offer a discount if you buy a hybrid or an alternative fuel vehicle.

You can feel good about protecting the environment and save money on insurance at the same time. Find out the exact rates to insure the different vehicles you’re considering before making a purchase.

9. Student Driver Discount

If you or your student driver is enrolled full-time at a high school or college and meets certain requirements, you could qualify for a discount. Car insurance companies usually require the student to maintain at least a B average and be aged 16 to 25. We found good student discounts ranging between 8% to 25%.

10. Get a Low-Mileage Discount

Insurance companies offer discounts to those who drive less. If you’re retired, live close to work, frequently take public transportation, or don’t drive a long distance, a low-mileage discount can help you avoid overpaying for car insurance.

Check with your insurer to know if you qualify for this easy way to lower your car insurance costs.

For more tips on car insurance, give us a call! (803) 276-1814

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