10 Tips To Reduce Your Auto Insurance Premium
1. Increase Your Deductible
Your insurance company may offer a number of different deductibles. As your deductible increases, your premium will decrease.
Deductibles are an amount that your insurance company will not pay when you make a claim – with a $200 deductible, your insurance company won’t pay the first $200 of a claim. Deductibles discourage people from making small claims, so a larger deductible means you’ll claim less often – and that means lower premiums.
2. Check for Discounts You Qualify For
You may get discounts for:
- Having multiple vehicles insured with the same insurer
- Having home and auto insurance with the same insurance
- Owning a hybrid or electric vehicle
Your rates with your insurer will always vary depending on the type of vehicle you drive.
3. Practice Defensive Driving
Defensive driving can help you avoid accidents—and when you don’t have any accidents or incidents, you can get better discounts on your insurance premium. Practice defensive driving!
4. Opt Out of Coverage You Don’t Need
Your insurance company may offer additional coverages, including:
- Coverage for sound equipment
- Increased income replacement coverage
- Loss of Use coverage to help you rent a vehicle
If you no longer need any of these coverages, dropping them can help lower your premiums.
5. Shop Around for Cheaper Coverage
Insurers want your business, and shopping around can help you find cheaper coverage. It’s like shopping around for a new cell phone plan, but easier, thanks to the work of insurance brokers. They go through dozens of different insurance providers on your behalf to help you find the best deal.
6. Update Your Policy
Updating your deductible, dropping coverage that you don’t need, or even opting to use Lay-Up coverage for vehicles you don’t use in the winter can help you reduce your premiums.
7. Improve Your Credit Score
Your credit score may have an impact on your insurance premiums – a higher credit score can be seen as an indicator of safer behaviour, and that can lower your premium.
8. Purchase a Smaller Vehicle
Auto insurance premiums are always based, in part, on the type of vehicle you drive. Smaller vehicles tend to be less expensive than larger vehicles; they may also be less prone to accidents. By using a smaller car, you’ll almost always see lower insurance premiums.
9. Bundle with home insurance
Your insurance company wants to keep all of your business with them. They may incentivize you to do that by offering you a discount if you bundle your home and auto insurance. The more insurance products you have with one company, the better the discounts may be!
10. Speak to Your Broker
The insurance brokers at Nation North can help you review your policy to determine whether or not you can make changes to lower your premium. We encourage drivers to speak to their brokers at least once a year; you never know what discounts you might get!