Auto insurance is a necessity for every driver, but it doesn’t have to break the bank. In fact, there are several effective ways to lower your monthly premium without sacrificing the quality of coverage. By getting the right kind of coverage and driving safe, you could keep your monthly auto insurance payment low.
Shop Around and Compare Quotes
One of the easiest ways to lower your premium is by shopping around for different insurance providers. Insurance companies use different criteria and risk assessments to calculate rates, so premiums can vary significantly from one insurer to another. Use online comparison tools or reach out to agents directly to gather quotes. Even if you’ve been with the same company for years, you might find a more affordable option elsewhere.
Increase Your Deductible
A higher deductible means you will pay more out-of-pocket in the event of a claim. However, it can significantly reduce your monthly premium. Before making this adjustment, assess your financial situation to ensure you can comfortably cover a higher deductible if an accident occurs. Generally, increasing your deductible by $500 to $1,000 can save you a substantial amount each year.
Maintain a Good Driving Record
Your driving history plays a significant role in determining your auto insurance premium. Drivers with a clean record—meaning no accidents, speeding tickets, or DUIs—are generally rewarded with lower rates. If you’ve had past violations, taking a defensive driving course might also help you qualify for discounts. Maintaining safe driving habits can result in long-term savings on your insurance.
Take Advantage of Discounts
Most insurance providers offer a variety of discounts that can lower your premiums. Common discounts include those for safe driving, low mileage, having anti-theft devices, and being a student with good grades. Additionally, some insurers offer discounts for vehicles that are equipped with safety features, such as airbags, automatic braking systems, and lane-keeping assist. Don’t hesitate to ask your insurer about all available discounts.
Reduce Unnecessary Coverage
If you own an older vehicle, consider adjusting your coverage to reflect its actual value. For example, if your car is worth less than the total cost of maintaining comprehensive and collision coverage, it might make sense to drop these options and opt for liability insurance only. Review your policy periodically to ensure you’re not over-insured for your car’s current value.
Improve Your Credit Score
In many states, insurers use your credit score as a factor when determining your premium. A better credit score typically results in lower insurance costs. To improve your credit score, focus on paying bills on time, reducing debt, and checking your credit report regularly to correct any errors. As your credit improves, so should your insurance rates.
Drive Less
Some insurers offer discounts for drivers who use their vehicles less frequently. If you can, consider carpooling, using public transportation, or working from home to reduce your mileage. The less you drive, the lower your risk of being involved in an accident, which can result in a lower premium.
Lowering your monthly auto insurance payment is possible with a few smart strategies. At MAIF, we’re dedicated to helping you maintain auto insurance without having to break the bank. Contact us today to speak to one of our providers and learn more about how we could help you save.