13 Ways For How To Lower Car Insurance Premiums

By | September 21, 2022

You may be wondering why my car insurance is so expensive and how can I lower it?
These reasons range from the value of your vehicle to your driving habits and many factors in between.

Some things are out of your control, such as the rising cost of repairing your vehicle, or the rising cost of health care and fraud.

The good news is that there are a few things you can do to lower your insurance rate if it seems too expensive.

1. Increase your deductible

Depending on your insurance provider, paying a higher deductible (the amount you pay out-of-pocket before coverage starts, in the event of an accident) is usually a quick and easy way to lower your car insurance payments.

You can do this directly online or through your insurance company’s mobile app. Keep in mind that you must be prepared to pay the deductible yourself if you are involved in an accident. Make sure you have enough savings set aside to cover your deductibles to be safe.

2. Check what discounts you are eligible for

Research what discounts your insurance company offers to make sure you get the best price on your car insurance.

There may be discounts you didn’t know about. Liberty Mutual offers several different types of car insurance discounts, ranging from a paperless contract to signing up for a new policy before your old one expires.

Common Car Insurance Reduction Discounts

  • Buying insurance online
  • Registration of preferred payment options such as automatic payment
  • Combining car insurance with home or multi-vehicle insurance
  • Participating in a safe driving program such as RightTrack®
  • Advanced security and anti-theft features in your car
  • Have an energy efficient car
  • Being a good student or being away at a teenage or young driver’s school
  • Be an active, retired, or reserve member of the military

Some companies may even offer discounts for things like garage parking (especially if you live in a high-theft area) or how much you drive.

3. Shop for car insurance

Make sure you get several quotes online or even from your local insurance agent.

Keep in mind that the cheapest insurance is not always the best. Focus on the coverage you need and make sure you get quotes that reflect that. If you think a cheap car insurance quote is too good to be true, it probably is.

Also Read – Top Reasons Of Your Car Insurance Rate Changes

4. Maintain a good driving record

Safe drivers always save with Liberty Mutual. In addition to protecting yourself and others on the road, it pays to drive safely.

Always avoid speeding, accidents and other traffic accidents. Not only will you avoid expensive speeding tickets or other infraction costs, but you’ll also help keep your insurance rates lower by proving you’re a less risky driver.

Additionally, if you have a history of no claims or violations, you may receive additional discounts.

5. Sign up for our safe driving program

Not having the best driving record or recently had an accident? There is always room for improvement. Regardless of your driving record, you can demonstrate your safe driving habits with our RightTrack® safe driving program

This program can be a great way to proactively demonstrate that you are a responsible driver without having to wait for your insurance rates to go down after an accident or driving violation.

The biggest benefit of participating in RightTrack is the opportunity to save up to 30% on your insurance premiums over the life of your policy. You even get a discount just for registering and participating.

While participating in RightTrack, we will track your driving habits and reward you for safe driving. Some of the behaviors we track include braking, acceleration, night driving and overall driving rate.

We offer 4 RightTrack programs depending on where you live. Or set it up and forget about devices with the RightTrack plugin and car brand devices that automatically monitor your driving habits.

Also Check – How Much Does Auto Insurance Cost Per Month

6. Take an accident prevention course

Driving courses are not just for new drivers. At Liberty Mutual, we offer a discount to policyholders in certain states who take a qualified accident prevention driver course.

7. Explore payment options

If you can be flexible with your payment methods, you can save on your car insurance premiums.

Liberty Mutual offers a discount if you pay for your policy in one or two annual payments. You can also save if you choose to pay with your preferred method, such as linking your bank account.

Another option is to go paperless with account statements and communication – you’ll save on policies and help the environment. It’s a win-win.

8. Improve your credit score

What does my credit score have to do with my car insurance? In some states, a credit check may be part of your risk assessment by insurance companies.

Sometimes people with higher credit scores get lower insurance rates because it is related to responsible driving.

If you want to start improving your credit score, remember to pay your bills on time each month, lower your credit utilization rate (the amount you spend compared to the total amount of your credit limit) and make sure the information on your credit report is accurate – you can dispute anything , which is not correct.

9. Do you work from home or do you only drive a few kilometers a day?

If you work from home, use public transport to get to work or commute a short distance (lucky you!), you may qualify for low mileage discounts.

10. Review your current policies

If you’ve had the same policy for several years, or maybe even several years, it may be time to check to see if your coverage needs have changed.

One thing to consider is that the older your vehicle is, the less it costs to replace it in the event of an accident. This means you can reduce your limits on vehicle repairs such as comprehensive and collision.

If you have paid off or owe the minimum amount on any loans you have on your vehicle, you may not need gap insurance. If you lease or finance your vehicle, you are likely to need to have some level of comprehensive and collision cover. You own your car, you may be able to reduce or cancel this cover.

You may even get additional discounts since you started your policy. If you’ve been over 25, married or bought a home, make sure your policy reflects this information – all factors that can help you save on premiums.

11. Research insurance costs before deciding what car you want

One factor that affects your insurance rate is the vehicle you drive, as some are more expensive to insure than others. Think: a fast sports car versus a minivan with the highest emphasis on safety.
If you’re looking for a new vehicle, it’s important to consider how much it will cost to insure the vehicle you’re buying. And it is useful to know that the cheapest vehicles are not always the cheapest to insure.

When choosing your vehicle, keep in mind that the more expensive a repair can be, the more likely your insurance rate will be. So adding features like upgraded equipment, top audio systems and other technology can add up.

Vehicles that tend to have the lowest insurance rates on average

  • Subaru Outback
  • Jeep Wrangler
  • Honda CR-V
  • Subaru Forester
  • Ford Escape
  • Ford F-150

12. Look at ways you can save with teenage drivers

Adding a teenage driver to your policy will most likely make your insurance more expensive. Fortunately, there are several ways to prevent costs from rising too much.

Many insurance companies, including Liberty Mutual, offer discounts for teenagers who have good grades, are out of school, or choose higher deductibles.

13. Group your policies

Consolidating your home and auto policies into one insurance carrier is one of the easiest ways to lower your insurance rate.

Whether you own or rent your home, you can combine it with an auto policy and save. In addition to the discount, you’ll save time by having just one account to manage with one login, fewer payments to keep track of, and more

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