Many factors contribute to your car insurance rates, and one of those is the make and model of your car. For example, sports cars and muscle cars tend to require higher premiums than minivans and sedans.
Fortunately, even if you have a car that costs more to insure, there are things you can do to help make your premiums more reasonable. From common strategies like bundling to lower insurance costs to unexpected ways like finding specialty insurers, many people can find lower insurance rates.
Find a Specialty Insurer
You might think a specialty insurer would cost more, but you should explore your options, get a quote, and see how they`d work for your situation.
If you don`t drive your car often and keep it mainly as a parade vehicle, a specialty insurance provider may be able to write you a premium designed for the type of driving you do. Since they`re not assuming the same risk when insuring a parade car as a daily commuter car, they can offer lower insurance rates.
Even if the kind of driving you do won`t help you save money from a specialty insurer, you might be able to get a more appropriate policy from them than from a standard insurance company. For example, a specialty insurance provider will cover custom parts and modifications in a more straightforward way.
Try a Pay-As-You-Go Insurance Policy
Pay-as-you-go insurance policies tend to be best for vehicles that aren`t driven many miles, but they`re worth considering even if you put on a lot of miles.
The programs typically work by charging a monthly base premium to which a per-mile charge is added.
These types of policies have gained in popularity recently. Some companies strictly offer pay-as-you-drive policies, but many traditional companies offer similar options.
Increase Your Credit Score
A few states banned using credit ratings to formulate insurance premiums, but it`s standard practice in most places.
A better credit score isn`t just good for insurance. It will also help you get better interest rates on car loans, mortgages, and any other type of loan. Here are some steps you can take to improve your credit score:
- Decrease your debt-to-income ratio
- Make on-time payments
- Monitor your credit and look for errors
- Request a credit limit increase
Building a good credit rating takes time, but you`ll start seeing results within a few months of practicing better credit habits.
Take a Defensive Driving Class
Most people associate a driving school with new teen drivers, but taking a defensive driving class can benefit anyone, especially if you`ve had a long break without classes. It might even help you earn a car insurance discount.
If you`re considering taking a driving course, contact your insurance company to see if there are particular classes they endorse and offer reduced premiums for completing.
Besides the unexpected ways to get lower car insurance rates, there are some widely known ways to pay less each month. First, you should compare car insurance quotes every six months to a year and see if you can save by switching providers. Also, you can bundle home and auto insurance for a significant discount depending on your provider.
Car insurance is necessary, but just because you have to buy it doesn`t mean you should overpay. Instead, do what you can to lower your bill in unexpected and common ways and free up a little bit of money in your budget.