4 Ways to Lower Your Auto Insurance Premium - City Girl Savings (2024)

FAQs

What are 4 factors that can change your insurance premium? ›

Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.

1. Increase your deductible. Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can make your car insurance payments less expensive.

Ask for a higher deductible

Typically, the higher the deductible, the lower the premium. Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.

The factors that affect car insurance rates include your age, driving history and marital status and details about your vehicle, such as its model year. Discover if you are overpaying for car insurance below.

With a higher deductible you'll pay more out of pocket, but your car insurance rate will be lower. Voice Over: With a lower deductible your rate will be higher, but you'll pay less out of pocket.

Take advantage of discounts

Low mileage discount: You could save by driving under a certain number of miles per year, as specified by the insurer. Multiple policy discount: You can often save money on car insurance and home insurance by bundling with the same carrier.

Increase your deductible

A quick way to reduce your premium is to raise your homeowners insurance deductible, the amount you pay if you have to make a claim. If you have a $1,000 deductible, you could save an average of nearly 13% a year by increasing it to $2,500, according to NerdWallet's rate analysis.

Raise your deductible

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.

How to negotiate with insurance for more money? ›

→ Premium reduction means to reduce the amount of the annual premium payment starting from the renewal date that follows next to the proposal. In the case of premium reduction, the amounts insured of the capital insurance rate and all additional rates will be reduced accordingly.

On average, drivers with poor credit pay 118 percent more for full coverage car insurance than those with excellent credit. California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.

How insurance companies set health premiums. Five factors can affect a plan's monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents.

Some factors that affect life insurance costs include your age, gender, health, family medical history, lifestyle and occupation. Insurance companies base life insurance rates on several key factors.