Depending on the state, each individual may pay a different amount of insurance cost annually. According to 2018 data provided by the National Association of Insurance Commissioners (NAIC), the average US citizen spent $1.190 on car insurance.
Some people may think that those numbers are reasonable, but others may not. So, here are the methods to pay less money for car insurance, including using the best cheap car insurance companies.
Use smaller vehicle
Unless you don’t mind paying a huge amount of insurance cost, you probably should ditch your SUV and prefer the smaller and affordable car.
As you know, one of the determining factors of insurance rate is the size and the value of a vehicle. So, a big new SUV might be very expensive to insure. Instead, prefer the small and fuel-economy vehicle for cheaper insurance cost.
Use mass transportation
When you apply for car insurance, your insurance company may ask the number of miles you drive on your car per year.
In most cases, insurance companies will give higher insurance premiums for drivers who drove their car a lot.
Therefore, try using mass transportation to cut down some mileage. Before you do so, it is important to ask the insurance company about their mileage threshold. That way, your effort to reduce your car mileage will not go in vain.
Use the best cheap car insurance companies
Consider using a different insurance company when your current policy is about to renew. That way, you can keep your eyes open for any cheaper policies from competing companies.
However, always remember that using the cheapest insurance isn’t always the best option. Therefore, be sure to check the company’s strength and reputation before you use their service.
Increase your deductibles
You may pay a higher down payment to receive lower investment mortgage rates. Luckily, you can do the same for your car insurance deductibles.
Deductible is the amount of money you would have to pay before the insurance company pays you for certain events, like accident, theft, or damages. In general, the higher the deductibles, the lower the annual premium you’ll have to pay.
The ultimate method to get a lower car insurance rate is to drive carefully. If you ever caused an auto accident, you will receive a moving violation on your records.
In case you’re wondering, moving violation is any event that will raise your insurance rate. If you have a good driving record, certain insurance companies may offer you a safe driver discount, which could range from 10% to 23%.