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5 Ways to Decrease Your Car Insurance

To drive a car legally, all drivers will need to have some form of car insurance. While car insurance is an inevitable expense and can be somewhat expensive, there are five ways that someone could reduce their car insurance expense:

1. Decrease Coverage

One of the best ways to reduce your car insurance expense would be to decrease your coverage.  To drive a car legally, most states only require you to have liability insurance.  However, to be protected against theft, vandalism, or at-fault accidents, you will need comprehensive insurance as well.  If you decide to forego comprehensive coverage, your total insurance bill could be cut in half.

2. Defensive Driving Class

Another way to receive an insurance cost reduction would be to take a defensive driving class.  These classes, which include a Safe2Drive class, is designed to teach individuals how to drive more safely and avoid accidents.  When taking one of these classes, a participant can receive a reduction in driving penalty points or even have a violation removed from their record.  This will then directly result in a reduction in car insurance rates.

3. Increase Deductible

By increasing your deductible, you will see a direct reduction in your insurance premiums.  The deductible is the amount of money that you will pay out of pocket during any insurance claim.  If you raise your deductible, it will therefore reduce the insurance company’s liability if a claim is filed.  Because of this, the insurance company will reduce your premium payments.  Even a $500 increase in your deductible could save you hundreds of dollars per year.

4. Combine Policies

If you have multiple drivers in your family or other insurance policies, you could save a lot of money by combining all of your policies into one.  Those that combine their home and auto insurance policies together could end up saving a few hundred dollars each year.

5. Shop Around

One of the most effective ways to receive a reduction in insurance premiums would be to shop around.  All insurance companies have differing underwriting and pricing methods, which means that one insurance company could give a much differing rate than the next.  By shopping around, you will find the lowest rate possible and could even use the rates to negotiate.

Takeaway

In conclusion, driving a car legally will require you to have some form of car insurance coverage.  While car insurance can be pretty expensive, there are five things that you could do to see a reduction in premiums.

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