Reader’s Question:

My car insurance contract is about to end and I’m intending to look for another insurance provider since my premium is too high. I heard there are lots of ways you can save on car insurance, can you share some?

Helen

Portland, OR

I totally understand you, nowadays searching for a cheaper option is very vital. You just made the right choice shopping around for a different car insurance company, because there will be no chance that they will tell you how to save money.

For starters, check your driving history. If you haven’t been into an accident or didn’t get any driving citation for the past 5 years, your chances of lowering your car insurance are good. Make sure you mention this to the car insurance company you want to apply for. Next is your credit rating. Nowadays, credit rating is used on almost everything, from mortgage to buying cars and of course, car insurance. In theory, the higher your credit rating, the more favorable you are to those car insurance companies, they will surely give you the lowest insurance interest rates.

Now, here are some tips that you can practically do. Set your deductible higher than what you have agreed before on your previous car insurance. If your deductible is $100 back then, raise it to $500 or even $1000. Your premiums will surely drop. The technique is just to save money on a bank so you can cover the amount equal to your deductible.

Review your previous coverage. Pinpoint the unneeded coverage you purchased before and once eliminated your premiums will drop. If you want to, you can only purchase your states minimum car insurance requirement which is the liability coverage.