Top Ways to Lower Your Auto Insurance Payments

Your car insurance rates are based several factors such as your driving record, gender, age and even where you live. Your insurance provider will take these and several other things into consideration when extending a quote. While many of these factors are out of your hands, there are a few ways to increase your chances of getting a lower auto insurance rate. It always pays to shop around, but there are several other things you can do to lower the high costs of car insurance.

Here are just some of the top ways to lower your auto insurance payments:

Increase Your Deductible

Consider how much you can realistically afford to pay in car repairs and other expenses in the event of an accident. Raising your deductible could help to lower your premium thereby reducing your monthly or quarterly car insurance payments. If you don't drive your car very often or live in a fairly rural area, you may benefit from increasing your deductible.

Keep Your Credit Score in Good Shape

Many car insurance providers will review your credit score when calculating your insurance rates. It's in your best interest to maintain a healthy credit score and take steps to boost your score when you can. Make sure your credit report is free of errors and avoid missing payments. If you've made corrections to your credit report recently, request a new quote from your insurance provider so that your account is being considered with the most accurate information.

Request a Discount for Safety Features

If your vehicle has a high safety rating and is equipped with anti-theft devices and other add-on safety features, you could be eligible for a discount. Your insurance provider may consider your car to be a less risky investment than other vehicles in your neighborhood so they can extend a lower rate. Make sure your insurance provider is aware of the safety features installed on your car so that you can qualify for this discount.

Report Your Miles Accurately

Your insurance provider will ask you how many miles you estimate you drive each month or year, and what you use your car for. Make sure you are reporting these miles accurately because less mileage usually means a lower car insurance payment. For example, if you're not on the road very often and only use your car for recreational purposes, your car insurance premium could be much lower than that of someone who commutes to work in a busy city regularly.

Ask About Employee Discounts

Some auto insurance providers work with corporations and larger businesses to extend a company discount or corporate discount. Make sure your auto insurance provider is aware of who your employer is and ask them if they offer any special discounts to workers in certain industries.

Sources:

Edmunds.com - Top 10 Ways to Lower Your Car Insurance Bill

Mint.com Blog - 12 Ways to Lower Your Car Insurance

Auto Insurance Tips - Best Ways to Lower Your Auto Insurance Premium