Ways to Lower Car Insurance Costs
Estimated annual car insurance premiums range from $926 to $2,551, according market data and research portal Statista. Although you might not live in a state with cheap insurance premiums, you can check with your insurance agent to see if the company offers special discounts, such as a break for being in the military or for being a good driver.
A few other ways you can lower your car insurance costs include:
- Clean up your driving record. One way to improve your driving record is to take a defensive driving course. Additionally, depending on your state, you can take the course to get an insurance premium deduction. Once you improve your driving record, you can keep your insurance costs low by driving safely and avoiding car accident claims.
- Qualify for a discount. You might qualify for a discount if you're getting insurance coverage for a newer vehicle or being added to a policy with multiple vehicles. Other reasons you might qualify include being a good student, being claim-free for a certain number of years or belonging to an auto club like AAA.
- Earn a loyalty discount. Some companies, such as USAA, offer a discount for being a loyal customer. Even though you're first-time car insurance buyer, consider choosing a company you can stay with so you can lower your car insurance costs over time.
Getting car insurance is a top priority when you get behind the wheel of your new car, and you'll need to shop around to find the best plan. You do have some options to reduce your car insurance premium, and you'll qualify for better rates if you maintain a great driving record. Take some time to compare car insurance plans and ask your agent questions so you can make the most informed decision.
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Cynthia Measom contributed to the reporting for this article.