3 ways to get cheaper car insurance rates
Asking your current insurer for a better car insurance rate isn't always going to save you money, but you could find out about discounts -- and shopping around can definitely save you money on your insurance. (iStock)
When much of the country went on lockdown due to COVID-19, a number of auto insurers provided rebates to customers. Insurers gave back money on premiums because people were driving less and the chances of an accident had declined with reduced cars on the road.
Now, however, while restrictions still remain in many parts of the country, insurance premiums have gone back up across the board — even for those who are still not driving much. If the cost of your policy has gone up, it's worth researching ways to get a better car insurance rate.
Multi-lender site Credible is a great place to start when looking for lower car insurance rates. With Credible, you can compare auto insurance companies, including their rates and fees. See if you're paying more than you have to and if it's worth switching insurance companies.
How can you lower your car insurance?
There are several ways to get cheaper car insurance rates — and you don't necessarily have to lose your coverage in order to do so. Your first option is simple, you can keep your current car insurance but find ways to qualify for a lower rate. However, if that doesn't work, you may want to consider shopping around or bundling policies.
Here are three options to consider when it comes to lowering your car insurance:
- Negotiate a better price on your car insurance
- Shop and compare rates from multiple insurers
- Bundle your auto and homeowners insurance
Read on to learn more about these car insurance options, and find out which makes the most financial sense for you.
1. Negotiate a better price on your car insurance
Insurers establish premiums based on a risk analysis so simply asking for a better car insurance rate isn't likely to result in your premium price dropping.
However, you may be able to get a reduction in your premiums if you're driving far less than you did before and your insurer takes mileage into account when setting your premium costs. You can call your insurer and ask whether a change in habits that have reduced your mileage could entitle you to savings.
Your insurer may also be able to help you explore options for other discounts you may be eligible for. Most insurers reduce premiums if you complete defensive driving courses, for example. Taking a virtual course while you're stuck at home during a coronavirus lockdown could be one way to lower your car insurance bill and make it more affordable.
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2. Shop and compare rates from multiple insurers
While your current insurer may offer a better car insurance rate if you reduced the miles you drive or if you qualify for discounts you weren't getting before, it's unlikely that your costs will go down substantially if you stick with the same insurer.
The good news is, you don't have any obligation to keep your current coverage. If your goal is to save as much as possible on your auto insurance, it's a good idea to get premium quotes from several auto insurers. Insurance premium prices can sometimes vary by hundreds of dollars a year from one insurer to another as each company has different models of pricing risk. A few minutes of your time spent comparing policy prices could often provide substantial savings.
The good news is, Credible makes it easy to compare insurance providers online very quickly and easily with one simple form. You can provide details about your vehicle and drivers in your household and find out if another insurer will offer you similar coverage to your current policy but at a reduced rate.
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3. Bundle your auto and homeowners insurance
Another great way to save on car insurance is to bundle your policies. If you get your car insurance and homeowner's insurance from the same insurer, you can often score substantial savings — sometimes as much as 25% off premium prices.
Bundling your coverage and buying multiple policies from the same company can also make managing your insurance coverage easier in addition to saving you money. You'll have just one agent to deal with and one company to make premium payments to.
If you're considering asking your car insurer for a better rate, one of your first questions when you contact the company should be how much you can save by bundling coverage. If you don't already have multiple policies with your current insurance provider, this alone could help you save hundreds of dollars on both home and auto premiums throughout the year.
But don't just stop with your existing insurer when finding out how much bundling policies can save you. Visit Credible today to compare coverage options and premium prices on your car and home insurance to make sure you're getting rock bottom prices on the insurance you need.