How To Get Lower Auto Insurance Rates

When it comes to auto insurance most people think that driving less means lower auto insurance premiums.

In fact, you may be disappointed to realize that saving miles has zero effect on your auto insurance premium. Instead of reducing the number of hours sitting behind the wheel, try finding other smart ways to capitalize on great saving opportunities.

The Consumer Federation of America has conducted research in which findings suggested that insurers do not reward low-mileage drivers with lower policy rates.

This same research also indicates that the frequency of your driving is correlated to the likelihood of getting involved in a car accident.

Yet, reducing your mileage does not mean you will be paying less on your auto insurance. Just forget about that misconception and find better alternatives that could lead you to more meaningful discounts.

Either way, learning how to get lower auto insurance premiums is vital for your budget.

Telematics To Lower Car Insurance Rates

Andrew Rosen, a certified financial planner with Diversified, LLC, commented:

Some insurers do have a plug-in that monitors your driving for typically 90 days. Often you get a 5 percent discount regardless, with a max savings of 25-30 percent. They’ll look at things like how much you drive, how fast you accelerate and break, and how much driving you do during high-risk times.

If you face this option, act smartly and show how great you are behind the wheel.

Safe Driving Equals Cheaper Car Insurance

This is a simple way of ensuring trust and, hence, lower premiums. If you are buying a new car, many car makes offer great safety features that are completely affordable. If not, try to get them separately so insurers do not find you “high-risk.”

Travis Biggert, chief sales officer for HUB International Mid America in Tulsa, commented:

Newer cars offer a huge variety of safety features — lane departure, back up cameras, blind spot monitoring. Most carriers offer discounts for these extra features.

Increasing Your Deductible Could Lower Your Auto Insurance Premium

Be careful here. You could save a lot of money on auto insurance if you know how to handle your deductibles beforehand. Substantial increases may put you on risk, whereas working according to your budget could be the best choice for your wallet.

Alex Lauderdale, transportation analyst at EducatedDriver.org, added:

If you raise it to $1000 from $200, you may save around 40 percent on premiums. Make sure though, that you have the money to pay your deductible stashed, just in case.

Speak With An Insurance Agent About Lowering Your Rate

Contact your agent and ask for a rerate. Typically, auto insurance rates increase after policy renewals and many people ignore these changes. The best way to handle this is to speak up for yourself.

Talking to your agent not only helps you keep track on your policy rates, but also gives you a better chance to see what other discounts you may be entitled to. By the way, many of those discounts are not necessarily advertised on the company website.

SEE ALSO: Drivers: Florida Car Insurance Requirements And Coverage