Lower Your Car Insurance Rate

If you refuse to pay high insurance rate, here are seven “bargaining chips” you can use to negotiate a better insurance rate.

Having a good driving record is one of the best ways to keep your car insurance rates down. Here are a few other ways to help lower your costs.

1. Shop Around

Make companies compete for your business. Prices will vary from company to company. So, be sure to ask at least 3-4 different companies for a quote. Make them earn your business.

Talk to your friends, neighbors and coworkers about their insurance policies. If they’re happy with their insurance company there is a good chance you will be too.

There are dozens of companies on line willing to give you a free car insurance quote. This may be a good starting place for you. Keep your eyes and ears open for radio and TV advertisements. Again, these agencies are willing to compete for your business; so, don’t settle.

2. Ask For Higher Deductibles

Deductibles are what you pay before your insurance policy kicks in. By raising your deductible, you can lower your insurance rates significantly. For instance, raising your deductible from $250 to $500 can reduce your collision and comprehensive coverage 10-30 percent. Raising your deductible to a $1000 could save you as much as 40% or better.

Just be sure you have the cash on hand to cover yourself in the event of a claim.

3. Have Safety/ Anti-theft Devices Installed

You may be eligible for further insurance discounts if your vehicle is equipped with one or more options: anti-lock brakes, automatic seat belts, air bags, or traction control.

Installing a vehicle recovery systems such as can save you up to 7-10% per year. Other Anti-theft devices like The Club are relatively inexpensive and can also help to reduce your insurance premiums.

4. Consolidate Insurance Policies

Insuring two or more vehicles through the same insurance company can help to reduce your insurance rates by as much as 10%-15%. Covering your home through the same company that insures your vehicles can help lower your rates by an additional 10%-15%.

5. Teenagers and College Bound Drivers

Teenagers and college bound drivers may consider driving the family car instead of driving his or her own vehicle. Students attending school and living away from home can reduce their premiums by as much as 30-50 percent this way.

6. Take Advantage of Low Mileage Discounts

Many insurance companies offer reduced insurance rates to people who car pool to work or find other ways to keep their mileage low.

7. Safety Courses

Along with having a clean driving record, taking additional driver’s safety courses could save you some 7-10% on your car insurance. If you are given a traffic citation, ask about the types of courses they offer. Some states willing to keep your insurance record clean if you agree to take complete these courses.

Lowering your auto insurance, in many instances, is about knowing what questions to ask and what you are entitled to. Since many companies aren’t going to do your homework for you, here is the short list of discounts you should inquire about:

[ ] Low Mileage
[ ] $500 Deductible
[ ] $1000 Deductible
[ ] More than One Car
[ ] No Accidents in 3 Years, 5 Years, and so on
[ ] No Moving Violations in 3 Years
[ ] Driver Training Course
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Safety Features (like Air Bags, Anti-lock Brakes, Daytime Running Lights, etc.)
[ ] Student Drivers with Good Grades
[ ] Consolidating Policies
[ ] College Students Away From Home
[ ] Long-Time Customers
[ ] Discounts for Non Smokers and Retirees

Deductions will vary from state to state and from insurance company to insurance company. So be sure to ask. Also the key to lowering your auto insurance rate is not necessarily how many discounts you are eligible for. It’s the bottom line that matters.