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5 Simple Ways To Lower Your Car Insurance Rates

Most people would love to stretch their monthly household budget to include things they're otherwise unable to buy. A new television, an updated wardrobe, and maybe a mini vacation with the family... these "luxuries" are often sacrificed due to limited funds. A lot of people would be surprised to learn they can easily reduce their auto insurance rates and save a significant amount of money. The key is knowing where to look.

This article will provide a list of five things you can do (today!) to save money on your car insurance. You may discover that lowering your rates is easier than you imagined.

#1 - Lower Your Coverage On Older Vehicles

Some types of coverage - for example, collision and comprehensive - are optional. Millions of motorists carry them without realizing they're doing so needlessly. If you're driving a late model vehicle, you should definitely have collision and comprehensive as part of your car insurance policy. It will cover any damage that results from collisions and other unforeseeable circumstances (e.g. flood, fire, falling objects, etc.).

But, suppose you own a much older vehicle that has a market value of $800. In that case, it may be worth lowering your collision and comprehensive coverage - or dropping it altogether. You'll save money through lower auto insurance rates.

#2 - Boost Your Deductibles

Deductibles represent the amount of money you'll need to pay before your auto insurance coverage activates. For example, suppose your current policy provides $20,000 collision and comprehensive coverage with a $100 deductible. That means you'll need to pay $100 toward any damages before your insurance policy takes effect. Many people are unaware that raising their deductibles can yield dramatic savings on their premiums.

If you currently have a $100 deductible, consider raising it to $500. While doing so means you'll need to pay more in the event of an accident, it can also reduce the associated portion of your premium by 30% or more.

#3 - Ask For Discounts

Oddly, many people learn about car insurance discounts from their insurance agents rather than seeking them out on their own. Insurers routinely offer discounts for a number of different circumstances. For example, you can enjoy lower rates by maintaining a good driving record, installing an anti-theft device, and driving less than a predefined number of miles. Ask your insurer whether they provide such discounts. If they don't, it may be time to start looking for another provider.

#4 - Choose Your Vehicle Wisely

Some vehicles are more expensive to insure than others. Despite what many people think, sticker price is not the only relevant barometer. A lot of cars are expensive to repair due to certain components and systems. Others are considered less safe by auto insurers, and therefore carry higher premiums. Still others are favorites of car thieves due to their resale value or the ease with which they can be stolen.

If you're planning to purchase a new vehicle, choose wisely. Compare auto insurance rates online for the specific makes and models you're considering. That will help you identify which vehicles have a lower profile.

#5 - Shop For Lower Rates

Lastly, we come to the most important tip of all: take the time to shop for cheap auto insurance quotes. Moreover, do so on a regular basis.

Too often, people assume rates are homogeneous across insurance providers. This is one of the most prevalent misconceptions in the industry. The reality is, rates can vary wildly from company to company for the same level of coverage with the same deductibles. The only way to uncover the most attractive package is to periodically compare rates between insurers. Fortunately you can do so easily through your auto insurance broker, or by doing an online insurance comparison.

If you're like most people, auto insurance rates represent a sizable chunk of your household budget. Use the suggestions above to lower your premiums and enjoy some of the things limited funds have forced you to place on the back burner.

Insurance Tips & Information