In the event of an accident, car insurance can offer financial protection you otherwise wouldn’t have. But when you consider the fact that the average American pays about $330 more for auto insurance than necessary, it helps to know where to look for cost savings. That’s why today, we will share five ways for how to get lower car insurance.
How to lower your car insurance five different ways
1. Increase your deductible
A car insurance deductible is an amount a driver is responsible for paying before repairs can be made after an at-fault accident. Your deductible amount can play a big role in how expensive your car insurance premium is, with lower deductibles raising the premium price and higher deductibles lowering it. If you have a low deductible and wiggle room in your budget to pay a higher deductible of $500, $1,000, or even $2,000 in the event you cause an accident, increasing your deductible may help reduce your premium.
However, if it will cost a lot to repair your car in the event of an accident, it may not make sense to take such a high deductible, so you may want to look elsewhere for cost savings.
2. Reduce your insurance limits
If you have a full coverage auto insurance policy, you may want to consider investigating what coverage amounts can be lowered. Each state has its own set of minimum insurance requirements, so even reducing coverage down to the “bare bones” or just less than your current limits could help save you money.
Before lowering coverage limits, make sure the new limit you’re choosing can cover the cost of damage or liabilities you’ll be responsible for if an accident were to occur. For instance, it may be a good idea to keep enough liability insurance to cover what you could potentially lose in a lawsuit if you were to ever get into an at-fault accident rather than settling for the minimum requirements.
3. Shop around for better rates
It may seem like a daunting task to find the best coverage at a more affordable price on your, but comparing rates is one of the best ways to lower car insurance. Many drivers stay with inadequate policies to avoid the hassle and headache of searching for new car insurance.
Luckily, Rate Retriever makes it easy to find cheaper car insurance. By answering a few questions about yourself and your car, we’ll match you with the car insurance providers that are likely to give you the best rates without compromising coverage limits or financial protection.
