Choosing A Better Insurance Plan

4 Ways To Cut Your Car Insurance Rates

by Isabella Torres

If your car insurance is higher than you'd like it to be, it can pay to look for deals. Before your insurance policy renews and you accept your high rates, choose to be proactive and find ways to save. Here are a few proven ways cut your car insurance rate:

Increase Your Deductible

The higher your deductible, the lower your premium. If your deductible is especially low, increasing it to $500 or $1000 will most likely make a dramatic difference in your premium. There are caveats to keep in mind, however. If you are accident-prone you may want to keep the lower deductible since it's more likely you will actually end up paying it at some point. Another caveat is that you should only increase your deductible to an amount you are able to pay easily out of emergency savings if you do get into an accident.

Consider a Telematics Device

A telematics device is a small box that gets wired into your vehicle and then tracks your driving behavior. It tracks speed, braking, and other indicators of good or bad driving, as well as your mileage. Many insurance companies are now offering these devices to customers and providing discounts to drivers whose data shows they are responsible and safe drivers. If you are a safe and cautious driver and don't tend to drive a ton, this might be a great option for shaving off a significant percentage of your car insurance bill.

Take a Defensive Driving Class

Even if you are already a very safe driver, everyone can benefit from learning new defensive driving skills. Many insurance companies offer discounts when you complete a defensive driving course. The course has to be one that is approved by your insurance company, and you will need to provide a copy of your certificate of completion.

Pay Your Whole Bill at Once

If you can swing it, saving up to pay your annual premium at once instead of a monthly bill will lower the overall amount that you pay by quite a bit. In exchange for the convenience of being able to split your annual premium into monthly payments, insurance companies tack on extra fees that inflate the cost. If you pay the bill all at once, you will also enjoy more breathing room in your monthly budget with one less bill to pay each month.

Working with an insurance agent and exploring these options for lowering your rate will save you money each month and in the long run. Contact a company like for more information and assistance.