What are some ways to lower my car insurance premiums?

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Asked April 27, 2011

1 Answer

The best way to lower your car insurance premiums is to be a safe and courteous driver. Showing that you do not pose a high risk of cost to the insurance company earns you discounts as a reward for keeping your policy costs low. Similarly, a high credit score is an indication of a low financial risk, and insurance companies take that into consideration when calculating each' person's premiums.

The type of car you own and any after market changes have an effect on your auto insurance rates, too. Any car with only 2 passenger doors is considered a sports car, and that means higher rates, while a factory installed theft prevention system can earn you even more savings. If economy is a primary concern, consider driving an older car that you can pay cash for, and drop your collision and comprehensive coverages completely. Parking in a garage is worth a discount on car insurance, because it reduces the risk of theft, burglary, and vandalism compared to a car parked at the curb.

Where you live and what you do also plays a part in your car insurance premiums. Neighborhoods with a high crime rate or more risky to insure a car in, and whether you are single or married helps the insurance company calculate your life stability. Many professions are eligible for auto insurance discounts, from teachers and professors to lawyers, doctors, and civil servants. Emergency service employees are eligible for discounts, along with other law enforcement and public service occupations. Military personnel get discounts both for being active duty and for coming home a veteran, and the discounts extend to other members of their immediate families. Even students can get discounts by keeping their grade point average above a 3.0.

If your premiums have gone up because of a speeding ticket or other infraction, you can take a driver improvement course and receive a discount on your insurance to offset the cost. To be truly successful at this tactic, take the course and use it to have adjudication withheld on the offense, effectively erasing that incident from your driving record as if it had never happened. Most states only allow this tactic to be used once, so choose the time and place carefully.

Answered April 27, 2011 by Anonymous

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