How to Lower the Cost of Your Car Insurance

March 25, 2019

Most of us need car insurance to drive our cars to and from work daily. But the cost of insurance can put a severe damper on our path to financial independence. Luckily, however, there is a way to have your cake and eat it too, by lowering your car insurance premiums, all the while taking full advantage of what they have to offer. Below are several tips that you can use to achieve that. 

 

Maintain a Good Credit Score

Your credit score plays a crucial role in the overall costs of your insurance premiums. The higher your score, the better the deal you will get on your insurance. It is for this reason, as well as others that you should always look into ways to raise and maintain your credit score to its highest possible levels. 

 

Maximize Discounts

Most insurance carriers provide various discounts to their customers. Some offer concessions to frequent carpoolers, or those with hybrids, for instance. It’s best to inform yourself about what these are and how you can apply for them. Many people aren’t aware of their existence, in the first place, so you should contact your carrier and see whether there are some that you are eligible. 

Keep in mind that most insurance carriers will also provide you with a discount if you use their service to protect other things such as for your home. By using the same insurer on multiple policies, you may get an allowance, sometimes as high as 10% of your total premium.

 

Increase Your Deductibles

Deductibles stand for the amount you have to pay out of pocket after you file a claim. By opting for a higher deductible, you can lower your insurance by 5-10%. So, if you have an insurance policy of say, $800 per year, you will save between $40 and $80 per year.

A younger driver, however, may have to pay $3,000 per year, in which case, they can save up to $300. You should only increase your deductible if you can afford to pay it, in the event of a claim. Make sure to analyze all the pros and cons before making this decision. 

 

Eliminate Comprehensive and Collision Insurance on Old Cars

Comprehensive coverage stands for the compensation you receive in the event of theft, fire, floods, or other circumstances beyond your control. Collision coverage, on the other hand, is the amount you receive for repairs on your vehicle in the event of an accident.

If you have a car that’s too old (and can’t sell) or that you think isn’t worth the repairs anymore, skipping on comprehensive and collision but keeping your liability coverage, makes financial sense. 

 

Install Safety Equipment

Safety equipment such as rear view cameras, parking sensors, anti-lock brakes, blind spot detectors, lane-departure warning systems, anti-theft devices, and an entire host of other such safety features can often bring you insurance discounts, aside from keeping you and others safe on the road.

The more of these features you have, the better your insurance will be. Modern cars usually come fitted with many of these features, but there are also stand-alone devices that you can mount on your older car. Ensure to let your carrier know about them. 

 

While this list is not exhaustive, it, nevertheless, stands to represent that there are many ways of lowering your car insurance costs. At Illinois Lending Corp, we are all about informing our customers on how to manage their finances better and more effectively. If you require a loan, we are here to help. Apply online today or call us at 1.877.LOAN.195

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