1. Choose your vehicle wisely
You might find a great deal on a new car
right now, but you might have to brace for sticker shock when you buy
your insurance policy. Luxury automobiles can be expensive to insure,
for example, because they are more expensive to repair and replace.
- Check your insurance rate before you buy. Call or get a quote online from your insurance company before you buy a new or used car.
- Check your car’s rating to get an idea of which makes/models could cost less to insure.
- Help thwart thieves. In some cases, installing an approved aftermarket immobilizer or purchasing a vehicle with one already installed may help lower your premiums.
2. Drive safely and drive less
Generally, the longer you drive without
major citations or accidents, the lower your premium will be. In
addition, the more time you spend driving and the farther the distances,
the higher the likelihood that you may end up in an accident regardless
of how safe a driver you are. Consider car-pooling, taking public
transportation or riding your bike. If you are a safe driver, Farmers
offers a safe driver discount to reward your good driving habits.
3. Consider car insurance costs before you buy
When it comes to buying a new or used
car, many people overlook insurance expense as part of the total cost of
owning a vehicle. It’s better to consider the cost of insurance before
you buy since auto insurance premiums vary widely depending on a
vehicle’s specific characteristics, including its price, average repair
costs, safety record and whether or not it’s a target among thieves.
4. Consider Higher Deductibles
Deductibles are what you pay before your
insurance policy kicks in. By requesting higher deductibles, you can
lower your costs substantially. For example, increasing your deductible
from $200 to $500 could reduce your collision and comprehensive coverage
cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40
percent or more. Before choosing a higher deductible, be sure you have
enough money set aside to pay it if you have a claim.
5. Maintain a Good Credit History
Establishing a solid credit history can
cut your insurance costs. Most insurers use credit information to price
auto insurance policies. Research shows that people who effectively
manage their credit have fewer claims. To protect your credit standing,
pay your bills on time, don’t obtain more credit than you need and keep
your credit balances as low as possible. Check your credit record on a
regular basis and have any errors corrected promptly so that your record
remains accurate.
6. Ask About Group Insurance
Some companies offer reductions to
drivers who get insurance through a group plan from their employers,
through professional, business and alumni groups or from other
associations. Ask your employer and inquire with groups or clubs you are
a member of to see if this is possible.
Some companies offer discounts to
motorists who drive a lower than average number of miles per year. Low
mileage discounts can also apply to drivers who car pool to work.
