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Lowering Your Car Insurance: 5 Tips To Help You Save

Alexis Raskin

Aside from banking on having a clean driving record, there are several ways in which you can keep your car insurance costs low. Here are five ways how.

1. Shop Around

Before settling with the car insurance you already have, it might pay off to shop around. Unfortunately, this isn’t as easy as scrolling through a few Etsy (NASDAQ: ETSY) pages and buying what catches your eye.

You’ll have to take time and get quotes from multiple companies that you can compare. Make sure the company you decide on has quality reviews from their customers, and is financially stable.

Look into recommendations from your friends and family as well. Your state insurance department could also be useful to contact for information on consumer complaints by company. Compare the quotes and reviews by company before picking one.

Insurance payments are a large part of your personal finances; you’ll want to ensure you’re getting the best prices from the available providers.

2. Question Higher Deductibles

You pay deductibles before your set insurance policy starts. As backwards as it sounds, asking for a higher deductible can actually lower your car insurance costs. Asking to raise your deductible from $200 to $500 may reduce your comprehensive coverage costs by 15 percent to 30 percent. Be sure you can effort to pay this deductible however, if you do have to a claim to pay.

3. Ask About Group Insurance

Several car insurance companies will offer insurance discounts for group plans. This can be an employee discount, a group of associates or a club. Ask any group you’re a part of to see if they’re interest in a group insurance. Also, check with your employer if they have group insurance plans.

4. Low Mileage Discounts

If you’re someone who drives a relatively low number of miles, it may be worthwhile to look into low mileage discounts. Several car insurance companies will offer these discounts to motorists who drive less than average, or drivers who car pool to work. Find out if this is applicable to you to save more today.

5. Try To Maintain A Good Credit History

As obvious as it is, establishing a trustworthy credit score can cut your insurance costs significantly. Insurers will oftentimes use your credit information to determine your price of auto insurance. Pay your bills on time and try to avoid taking out loans greater than you can pay back in a timely manner.

If your credit score is low, we suggest using MoneyLion for your online banking. Even users with low credit-scores can access a 5.99 percent APR loan, keeping your savings progress on track. As a Plus member, you an access these low-cost loans at anytime, without the need to reapply. Not only will this loan be deposited in instantly, but it has been proven by MoneyLion to raise members' credit.

Lowering your car insurance can help save you hundreds of dollars if not more each year. Being savvy about the available discounts that may be applicable to you can help you save cash fast. Car insurance rates are on the rise everywhere, but that doesn’t mean your rate can’t be lowered.

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