The cost of auto insurance depends on many factors, including your age, marital status, credit rating, and driving history. You may not control some of these factors, but you can still reduce your premiums. Below are a few tips to help you lower your rates.
How to Reduce Your Auto Insurance Premiums
1. Increase Your Deductible
The deductible amount is what you must pay toward a claim before your insurer must contribute. It makes sure drivers have a financial stake in the matter and do what's necessary before filing a claim. The higher your deductible, the less you must pay in premiums. Thus, you can reduce your monthly payment by agreeing to pay more out-of-pocket if you make an auto insurance claim.
2. Drop Full Coverage
If you have an older vehicle, you may not need to maintain collision and comprehensive coverage. If the yearly payment that goes toward full coverage is more than 10% of what you would get for a totaled car—it may be time to drop it. However, if you still have an outstanding loan balance, your lender likely requires you to maintain full coverage to protect their investment.
3. Bundle Coverage
Many insurers offer discounts to policyholders who buy more than one policy from them. For example, if you buy both renters insurance and auto insurance from the same company, you will likely pay less for the bundle than you would if you purchased them separately from different providers.
4. Ask About Discounts
Insurers offer numerous other discounts, such as for maintaining outstanding credit or for teens who excel in school. Others reduce rates if you complete a driver safety course or install an anti-theft device. Ask your agent if you qualify for any discounts, or if the insurer offers any you can work toward.
To have a friendly agent guide you in choosing an affordable auto insurance policy, contact 1st Choice Insurance in Fairfield, OH. They serve Hamilton, Butler, and Warren Counties and specialize in auto, RV, SR-22, and motorcycle insurance. For more information about their services, visit the website. Call (513) 860-0666 to talk to an agent.