How to Lower Car Insurance Premiums

By Jerel Jacobs

  • Overview

    Owning a car can be a considerable expense and good portion of that expense can be attributed to car insurance. This article will tell you how to lower car insurance premiums.
    • Step 1

      Drive safely. If you do not get speeding tickets and get involved in "at fault" accidents, your car insurance premiums will lower over time. People who have a history of driving responsibly get the best rates.
    • Step 2

      Increase your deductibles. The deductible is the amount of money that you pay in the event of a claim before your policy will kick in. Increasing your upfront out-of-pocket costs has the inverse effect of lowering your overall insurance premium.


    • Step 3

      Drop unnecessary coverages. For example, if your car company provides you with emergency towing or you have separate roadside assistance benefits, removing these from your insurance policy will save you money.
    • Step 4

      Increase you credit score. Many insurance companies use your credit score to help them calculate your rates. By increasing your score and maintaining a good driving record, you will automatically lower your rates in most cases.
    • Step 5

      Take a driver improvement course. If your state allows it, taking a driver improvement course (usually an eight-hour classroom session) can dramatically lower your insurance rates, especially if you have a few tickets or have been in an accident.
    • Step 6

      Check your bill for errors. Make sure the information contained within your policy matches your requested and required coverages. Also double-check the insurance company's records against your Division of Motor Vehicles' driving record to make sure you are not being penalized unfairly for any accidents or tickets.
    • Skill: Moderate
    • Ingredients:
    • An up-to-date copy of your driving record
    • A good credit score
    • A safe driving history
    • A copy of your car insurance policy
    • Tip: Nearly every state has minimum insurance requirements that must be met. Check with your state's Division of Motor Vehicles.
    • Tip: Don't make unnecessary car insurance claims. Minor scratches and dings are a normal part of car ownership.
    • Tip: If you do not own your vehicle, check with the lien holder regarding its minimum insurance requirements before making any changes.
    • Warning:
    • Never operate a motor vehicle without insurance.

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