Home » Insurance » Auto Insurance » Auto Insurance Bill

Auto Insurance Bill: 5 Ways To Lower Your Car Insurance Payments

Updated: November 17, 2018

Auto insurance is something that every car owner must deal with at some point. In truth, we all want to save on our auto insurance bill.

There are ways to ensure that you are paying less money every month for a good auto insurance policy.

The best way to pay less for auto insurance is to understand how these policies work.

By understanding auto insurance policies and the different sub-categories within these, individuals are better informed when making decisions about their policy.

Here is a look at five ways to lower your car insurance payments while retaining a good level of coverage.

Lower your Auto Insurance Bill with Car Safety Features

While most modern vehicles come with safety features built into them, this is not the case for older cars.

What a lot of people do not know is that by adding these safety features, individuals can convince auto insurance companies to lower their monthly premium rates.

If someone has an older vehicle, they may want to look into getting safety features added to the car. For example, adding air bags, brakes with anti-lock mechanisms, anti-theft features and engine cut-offs is a great way to show insurance companies that you take safety seriously.

What a lot of people do not know is that by adding these safety features, individuals can convince auto insurance companies to lower their monthly premium rates.

There is an upfront cost associated with adding these safety features, but the lower premiums more than make up for these expenses. In addition, having the safety features will ensure that anyone riding in the vehicle is better protected in the event of an accident.

Speak with your insurance agent about the types of safety features they offer discounts for, and speak with a mechanic about adding these features to your existing vehicle.

Lower your Auto Insurance Bill by Having Higher Deductibles

One way that a lot of people look to lower their monthly premiums is by getting higher deductibles on their auto insurance policy.

While there is a risk with increasing the deductible, this is often a calculated risk that individuals must take in order to lower their premium rates.

What is a deductible? This is the amount of money that an insured individual must pay out of pocket in the event of an accident. For example, a policy with $500 means that you must pay $500 if you cause an accident, before liability coverage kicks in and pays for the rest of the damage or medical expenses.

While there is a risk with increasing the deductible, this is often a calculated risk that individuals must take in order to lower their premium rates.

For example, someone who is attending college probably does not have a very high disposable income. They can only afford car insurance with very low premiums. By increasing the deductible, they are taking the risk that they will not get into a car accident.

It is up to you to decide whether the lower premiums are worth higher deductibles. Speak with an insurance agent about the specifics of how higher deductibles would impact your policy.

Lower your Auto Insurance Bill with Less Auto Insurance Coverage

There are three major parts to every auto insurance policy: liability, comprehensive and collision coverage.

In contrast, collision coverage is there to pay for damages to your vehicle from an accident that you caused.

Liability coverage pays for the damage caused by the insured individual’s negligence to someone else or their vehicle in an accident.

In contrast, collision coverage is there to pay for damages to your vehicle from an accident that you caused. Meanwhile, comprehensive auto insurance pays for damages that occur when the car is not being driven.

For those who want cheap car insurance, getting only the minimum level of liability insurance required by your state is a viable option. While this eliminates some of the coverage, it ensures that you can get a legally acceptable policy and take your car on the road every day.

If you wish to have comprehensive and collision coverage, you can set the limits to their lowest level, which does reduce monthly premium amounts. In contrast, someone who has higher limits for liability, comprehensive and collision coverage will inevitably pay more per month or per year for auto insurance.

Lower your Auto Insurance Bill by Shopping Around

A lot of people make the mistake of going with the first cheap auto insurance policy that they are quoted. This prevents them from looking for better and cheaper policies from other companies.

Even if someone has an insurance policy from a company that gives them good service, it makes sense to shop around every year.

When shopping for auto insurance for the first time, make sure you go through every reputable company in your state. This will give you a good idea about the types of policies that are available from different vendors.

Even if someone has an insurance policy from a company that gives them good service, it makes sense to shop around every year. Companies are always offering discounts for new members, which means that changing up your provider every one or two years will save you money.

There is no reason to think that shopping around for auto insurance makes you disloyal to your current provider. In fact, many providers will offer discounts when their policyholders inform them that they are evaluating other options.

Sticking with the same provider for five or ten years, without looking for discounts periodically, will result in the policyholder paying more for the same level of cheap car insurance.

Lower your Auto Insurance Bill Through Clean Driving

A lot of individuals are not aware of the fact that auto insurance companies offer discounts for clean driving. Individuals who have no history of accidents or driving tickets will get discounts when offered a new auto insurance policy.

Individuals who have insurance in fault states will not suffer from higher premiums if they are the victims in an auto insurance accident.

These discounts also apply to existing policies. When it comes time to renew an auto insurance policy, your company will offer lower rates if you did not make any insurance claims in the past 12 to 24 months.

In contrast, individuals who get into a lot of accidents will see their existing premiums rise over time. Even if they try to get new auto insurance policies, those companies will offer higher rates. This happens because the individual is deemed as being a higher risk to ensure.

Individuals who have insurance in fault states will not suffer from higher premiums if they are the victims in an auto insurance accident. The safe driving discount is concerned with accidents that the insured individual is causing.

By making good decisions on the road every single day, insured individuals can put themselves in a position where they are paying lower premiums for the same level of coverage each year.