Auto insurance is one of those expenses that you just can’t avoid. You need a car to get around, and you need insurance to drive that car. Of course, the more expensive your car is the more expensive your insurance will be. Experiences drivers might have lower costs, but that still doesn’t always seem low enough. In fact, a recent study found that USA citizens are paying an average of $900 for car insurance every year. That is a lot of money, and it is difficult to find a lower rate in the market.
These tricks may help you reduce your rate, in the most cost effective way possible.
1. Install car security systems
One of the main costs auto insurance companies consider when quoting you is how likely your car is to be stolen or vandalized. They consider the location where you live. Also, whether or not you park your car in a garage and how secure you car is. If you get a car alarm or an anti theft system or a tracking device put in, the chances of your car getting robbed decreases. Since insurance companies work solely based on probability, this will reduce your rate. Some cars already come with the latest security systems put in place, which can save you money on installation.
2. Sign up for a driving class at the DMV
Another major cost auto insurance companies consider is how likely the driver is to get in an accident. Having a license is not enough. Try to have more experience on the road. The best way to prove your driving skills to your insurance company is by signing up to one of the many defensive driving classes offered through local companies or the DMV. Once you pass your test you can request a lower insurance policy from your car insurance company. Another advantage is that you can get points in your license reduced after taking the test. This will of course lower your rate.
3. Pay six month in advance
Obviously this isn’t possible for everyone. But if you can afford it, you can save a lot of money through this method. By paying twice a year instead of once a month, you will save a lot of money. Especially with companies like Geico. Not only will your auto insurance rate be lower, it will also help avoid certain fees which comes with paying a bill every month.