Auto Insurance Coverage Rates: How Low Can They Go?

So you’ve got your insurance policy all lined up, but you want to know what you can do as a driver to keep your auto premiums low.

If you want to lower your rates, you'll need to lower your risk to your insurance company. Though some of this is common sense, there are some practical, specific steps you may not be aware of that can help, including:

1. Drive Safely

The most obvious tip for saving money on your car insurance is to simply drive safely. If you can prove to your insurance company that you are a low-risk customer, your rates will gradually drop. The longer you stay accident-free, the cheaper your policy will be!  
 
2. Drop the Extras  
 
Many people think the more coverage the better. But that's not necessarily true. If your car is inexpensive, used or old, you may benefit from a more affordable, basic policy, rather than a more comprehensive one that covers everything from hail to theft to vandalism.  
 
3. Raise Your Deductible  
 
Some people prefer policies with low deductibles. But the higher the deductible you're willing to pay, the less responsibility your insurer has to take. Because of this, a policy with a higher deductible usually has lower monthly rates—and the reverse is also true.

4. Know Your Discounts  
 
If you're a safe driver, most auto insurance companies provide incentive discounts to encourage your good behavior. If you have airbags, anti-lock brakes, anti-theft locks or other nifty safety features, you qualify for more discounts. And if you’re a student with good grades or you own more than one car—that's right, you'll get more discounts!  
 
5. Think outside Your Car 
 
Your insurance rates are based somewhat on elements beyond your control. Maybe you have a squeaky clean driving record and yet still pay large car insurance premiums. This may be because you live in a big city and drive in heavy traffic. Typically, drivers living in smaller, rural areas pay less for car insurance for this reason. It's wise to keep these things in mind as you shop for a policy—and a home.

6. Don’t Buy Just Any Car 
 
Instead of getting that high-profile car you’ve been eyeing, consider the financial consequences first. If that fancy car costs a lot to repair or is commonly stolen, your insurance will cost more as a result.

With some understanding, skilled insurance shopping and determination, you can get and keep low car insurance rates.

So follow these handy-dandy tips for best results, talk to your insurance agent about other ways to lower your premiums—and save money on auto insurance!