How to Reduce Automobile Insurance Rates
- 1). Eliminate any unnecessary coverage. Canceling collision and comprehensive coverage (protection from colliding with another automobile and protection from extreme weather, theft and fire) can save you money by reducing your annual premium rate by 20 percent or more, according to the Insurance Information Institute.
- 2). Read your policy and search for discounts for which you qualify. According to the National Association of Insurance Commissioners, insurance companies offer discounts to drivers who have few or no accidents or moving violations, drivers who get good grades, drivers with multiple vehicles on the same policy and drivers who complete a defensive driving training course.
- 3). Raise your deductible as much as you can afford. If your deductible is currently $500, consider increasing it to $1,000 or more to reduce your monthly premium by as much as 40 percent, according to the Insurance Information Institute. The deductible is what you pay before your insurance company starts paying the bill if you get into an accident.
- 4). Reduce your driving mileage. Some insurance companies give a reduced rate for maintaining low yearly mileage on a vehicle. If you carpool to work, you may qualify for this discount.
- 5). Preserve your credit. Insurance companies assign better rates to drivers with good credit. According to the Insurance Information Institute, policyholders with good credit histories file fewer claims than drivers who poorly manage their credit. Pay your bills on time, including your insurance premium. Review your credit report annually for errors.
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