5 Ways To Reduce Your Auto Insurance Bill

April 11th, 2017 by admin

Many of us consider saving money to be important. One way to save money is to figure out how to lower car insurance payments. Owning a vehicle and keeping it maintained can be expensive, but if you reduce your auto insurance bill, it can really help. You’ll be happy to know that it can be easy to bring down your rates with a few tricks up your sleeve.

Below are 5 ways to lower the cost of your insurance premiums.

1) Drive Carefully

After speeding tickets or after an accident, your insurance premium could increase. You can actually save money on your car insurance bill by avoiding accidents and not speeding. Not to mention, many companies will continue to lower your payments for each year you go without any type of traffic violation.

Distracted driving is becoming a larger issue as smartphones continue to be part of our daily lives.  Do not text and drive.  Not just for an insurance discount, but if could save your life or someone else’s.

2) Add Security and Safety Features

You may qualify for auto insurance discounts on your premiums by buying a car that has built-in safety features, like anti-lock brakes and airbags. Also, if you don’t have them, adding security features like engine cut-off systems, anti-theft systems and GPS tracking (all of which help with reducing car theft) looks good to insurance companies and could get you that discount.

3) Check your Credit Score

More companies today are taking your credit score into consideration when making their insurance rate calculations. In fact, some companies think it’s critical when they are trying to determine your rates. If your credit score is poor, you could end up with a higher premium. However, if you have a good credit score, that could score you a better premium rate. So, it is always a good idea to pay your credit card and other bills on time and take other steps to improve your credit score.

4) Look for Discounts

Obviously, first-time drivers might not get a discount, but there are many of them available for the more experienced driver. For example, many insurance companies provide discounts if you haven’t had a moving violation or accident for a few years. Other companies offer discounts for taking a defensive driving course. Just because you are young doesn’t mean you have to suffer from higher rates. There are discounts for young drivers too who, if they are good students, away at college without a car or have taken a course on drivers education, may qualify.

Some discounts you can ask about include:

  • Same company bundle (homeowners and auto)
  • Anti-theft devices
  • Safety features
  • Good credit record
  • Drivers Education course
  • Defensive driving courses
  • Raising your deductible
  • Long-time customer
  • Low annual mileage
  • College student away from home
  • Student drivers who have good grades
  • No moving violations in several years
  • No accidents in several years
  • EFT (Electronic Funds Transfer)
  • Paying premium in full
  • Affinity group memberships (being member of certain organizations)

Not all insurance companies will offer all these discounts, and it could also vary by state.

5) Raise Your Deductible

By increasing your deductible, you could actually bring down your monthly bill significantly. Just be sure that you keep your annual deductible in a savings account so that you have it if you do get into an accident or need a repair done that will require you to pay your deductible first.

If you drive safely, add some security features to your car and compare many auto insurance quotes, you should be able to take advantage of a lower premium and one that’s best for your situation. There are many ways to lower your rates; just ask your insurance agent.

Call us here at The Insurance Center of North Jersey at 201-525-1100 today to discuss ways to reduce your auto insurance bill.