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Lower Auto Insurance Rates With Simple Steps

Updated on September 6, 2009

There are ways to lower your car insurance rates and it most of them just take a bit of research.

In most states car insurance is required. There are exceptions to the rule such as New Hampshire which does not require drivers to carry car insurance but for the majority of us, consider it taxes. As long as your living the government is going to expect you to pay taxes, so long as your driving the same goes for car insurance. Unless moving to New Hampshire is in your future plans.

It seems to be that the products and services we are HAVE to have, seem to cost the most. Health insurance rates and medical care for example are outrageously priced. Car insurance rates, crazy. Car insurance rates are one ridiculously priced "just in case" services. Its very possible to have a high car insurance monthly payment then the actual loan payment on the car.

Lowering Your Car Insurance Rates

  • Drive Safely. We all know that driving cautionsly and paying more attention to the road is what we should be doing. How many of us are still doing things in the car that could cause an accident. I am just as guilty to texting on my cell phone while driving. Driving safer really does mean less risk of accidents. Less accidents means car insurance rates can usually earn credits for being accident free.
  • Check for Discounts on Your Current Policy Review your car insurance policy with your insurance agent and ask if there are any discounts that you may be eligible for to lower car insurance rates. There are a variety of discounts available. You could qualify for a discoun such as a defensive driving class discount for adults over 55 who took a driving class, or good student discount for unmarried students under 25 with great grades. Ther are also discounts available for having anti-lock breaks, alarm systems or other anti theft devices such as The Club, air bags and more.
  • Re-Evalueate Your Current Policy's Coverage Look over your current policy and examine where maybe you could change coverage. Is your coverage amounts a little excessive? More coverage means a higher car insurance rates and the agent that signed you up for the policy may have been looking at his bottom line more then yours. You can lower many coverage amounts and still have a safe and responsible amount of coverage. Call your insurance company and ask them to compare your coverage to the average coverage amounts.
  • Raise Your Deductible Amount While you have your agent on the phone as about raising your deductible, the amount you will have to pay out first before the insurance company will pay their portion, can lower your rates. Ask your agent what the difference would be if your raised your deductible from what it is to $250 or $500 higher. Sometimes, the difference isn't always worth raising it, but sometimes it can be quite drastic.Think about how often you really use your car insurance and let that guide you in your descion on raising your deductible. If you've had just one accident over the past 4 years, it may be benificial to lower the rate just by raising your deductible to $750 or $1000.
  • Examine How Your Car Insurance Company Has You Classified. Did you know that rates are based on age and living situations. You should have a discount applied when you have been driving for 5 years. Turning 25 could also qualify for a lower rate. Ask your agent about other factors for rate determination that could lower rates.

Shop Around For a Better Rate.

Perhaps your current car insurance company is just more expensive then it should be. There are hundreds of car insurance companies and it's a good bet that someone is going to charge less and give just as great if not better service.

There are two ways to do this. Either you can sit down with a phone book and start calling the car insurance companies in your area, or you can use a company such as NetQuote to do the searching for you and find the best rates. I switched my insurance after using NetQuote. I was put in touch with 4 insurance companies in my area that could offer me a better rate then what I was already paying.

Within minutes of submitting the application, an insurance agent from one of the companies actually called me. After listening to the policy he was offering at a price I couldn't beat, I was able to lower my monthly car insurance rate from $174 to $110 with all the same coverage and deductibles. NetQuote is a free service. They get paid by the insurance companies. They make more money by showing you the best rates you could get with companies your familiar with. Go here to learn more


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      Cheapest Cars to Insure 9 years ago

      Cool, it iwas very informative!