There are many different ways you can cut costs and save on your auto insurance. You can compare prices from multiple companies, raise your auto insurance deductible or decrease your policy limits. Most people are well aware of these options. However, if you have done these and are still paying more than you would like, you may be interested in learning about a few lesser-known ways to decrease the amount you pay for car insurance. Here are a few different things you can do to cut your auto insurance costs.
There are many benefits to carpooling. You can help the environment, reduce the amount of money you spend on gas and decrease the wear and tear on your car, reducing the amount you pay to maintain it. However, carpooling can also help you to reduce the amount you pay for auto insurance. Many auto insurance companies base your rates on how many miles you drive per year. The more miles you drive, the more likely it is that you will be involved in an auto accident. If you drive 7,500 miles or fewer per year, you could receive a low insurance rate. Anything over 13,000 miles per year will get you a higher rate. Carpooling can decrease the number of miles you drive per year, knocking you out of the high rate or even reducing you into a low mileage rate.
Improve Your Credit Score
When you shop for auto insurance, you know that your driving record will have an impact on the rates you pay. If you have accidents or tickets, you will pay more than someone with a clean driving record. But you may not realize that many auto insurance companies also take a peek at your credit score. If your score is high, you may pay up to 25 percent less than someone with a poor credit score. As such, if you have a poor credit score, work to improve it. This can help you in many areas of your life, including lowering your car insurance costs.
If you are looking to lower your auto insurance rates, contact your insurance company and negotiate your rate. Many people don't realize you can do this, but you can. Auto insurance companies want to keep your business, so if you are able to tell them what it is you are looking for, they may be able to help you. Sometimes the agent may suggest decreasing your policy limits or increasing your deductible, but if you are firm that you don't want to change your policy and are offering to pay a fair amount, they may be able to find other discounts you qualify for or work with you. Always compare rates for other companies and let the agent know what companies are willing to give you what you want. This technique may help you stay with your preferred company while paying less than you are currently paying for the same coverage.
Pay Your Bill Wisely
The last way to reduce what you pay for auto insurance is to pay your bill wisely. Auto insurance companies may charge you surcharges for paying your car insurance monthly versus every six or twelve months. Auto insurance companies may charge you to pay your bill online with a debit or credit card instead of having the money debited directly out of your checking account. And auto insurance companies may even charge you for having a paper bill mailed to you instead of using a paperless system involving email. It may only be a few dollars here and few dollars there, but month after month, this can add up quickly. Learning what surcharges you may be subjected to when you pay your bill, and then paying your bill so as to avoid those surcharges, can help you save some money on your auto insurance policy.
There are many different things you can do to lower your car insurance rates. Some of these items are well-known, such as driving safely and asking an insurance company about any discounts you may be eligible for. Other things are not as well-known. If you are looking to decrease your car insurance costs, consider carpooling, improving your credit score, negotiating with the insurance company and changing the way you pay your bill in order to save some money.
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