It’s bad enough that gas prices seem to be once again on the rise, but auto insurance premiums are going
up as well in many states. Take Michigan, for instance, where average annual premiums jumped $443 in
2011 according to an recent Insure.com survey.
Fortunately, there are ways to lower your rates. Here are seven tips to help you get the best car
insurance premiums possible.
7 ways to lower your car insurance rates
- Compare auto insurance quotes: Being loyal to one company may help lower your rates
over time, but don’t count on it. The best way to make sure you have the lowest premiums possible is
to regularly see what the competition has to offer. To make the process simple, use websites where
you can easily compare car insurance policies and rates from multiple companies.
- Consolidate policies with one company: If your car insurance is with Company X and
your homeowners insurance is with Company Y, you probably have less money in your pocket than you
could have otherwise. Virtually every company offers a multi-policy discount so don’t miss out on
- Look for an affiliate discount: Likewise, many companies offer affiliate discounts.
They may give you a percentage off your premiums simply because of where you work or where you bank.
- Increase your deductible: One sure-fire way to lower your car insurance rates is to
increase your deductible. This is the amount you are willing to pay out-of-pocket before your auto
insurance coverage kicks in. However, before doing so, be sure you have access to enough cash to
cover the deductible in the event you have an accident.
- Switch to storage insurance in the off-season: If you have a vehicle you use only
seasonally, don’t make the mistake of paying for full coverage year-round. Storage coverage is
exceedingly affordable auto insurance and can be as little as a few dollars a month depending on the
type of vehicle.
- Move to a new area: OK, so this one might not be for everyone, but geography can
affect your rates. Insurance companies may charge significantly more for those living in densely
populated cities and states, and the best car insurance rates may be reserved for those living in
- Check your credit report: Finally, it may surprise you to know that in some states
insurance companies are allowed to adjust your premiums based upon your credit score. Check your
credit report at least once a year to make sure there are no errors that could be pushing your rates
While you can’t do anything to lower the price at the pump, you can get a better deal on your car
insurance rates. Keep these tips in mind as you compare auto insurance quotes.