Auto insurance is a requirement to drive on public roads in Kentucky, and it provides coverage in the event of a collision or accident. Therefore, whatever car you buy, you need to consider insurance costs as part of its operating expenses. However, there are ways to reduce costs and make comprehensive coverage more affordable. Consider the following tips to help you lower your car insurance premiums.

How to Reduce Auto Insurance Premiums

1. Multi-Policy Discount

Most insurers offer a discount to policyholders who buy more than one policy from them. This "bundle" or multi-line discount typically applies if you cover more than one vehicle or if you purchase home and auto insurance from the same carrier. You will often pay even less for both than if you purchased the cheapest coverage from different providers.

2. Increase Your Deductible

Insurance companies base your rates on the amount of risk they calculate they're taking by insuring you. If you raise your deductible—which means you pay more toward a claim before the insurer becomes responsible—you reduce their risk and can, therefore, enjoy better rates. You can reduce your monthly payment considerably if you agree to pay more out-of-pocket in the event you ever need to file a claim.

3. Improve Your Credit Rating

One of the factors insurers use to calculate risk is the credit rating of their policyholders. They have discovered a correlation between responsible credit use and safe driving habits. You can reduce your rates by improving your credit rating. Check your credit report and contest any inaccuracies. Pay all bills on time—including rent and utilities—and if you need to make a late payment, make arrangements in advance with your creditor. 

To see if you can reduce your premiums, contact Hamilton-Martin Insurance Agency, the premier auto insurance provider in Louisville, KY. They have served the residents of Jefferson County for 18 years. In addition to car insurance, they also offer business, home, and life insurance. Find out more about the company on their website or call (502) 957-6500 today to request a quote.