Find Low Auto Insurance For Your Lifestyle

It's possible to find low auto insurance that still offers decent coverage. The trick is finding ways to save based on your lifestyle, including your financial and living situations. Here are a few tips of how to find low auto insurance to fit your lifestyle.

Low Mileage Policies

Some companies offer discounts to those who do not drive often. If you live in an area with accessible public transportation, consider taking the train or bus to work. You'll save money on your auto insurance, and you'll help the environment, too. If you work from home and are lucky enough to avoid a long commute every day, check into low mileage options. Low mileage equals low auto insurance.

Older Car? Reduce Your Coverage

If you drive an older car, it may make sense to reduce your insurance coverage, especially if your car is valued less than $2,000. Consider axing collision coverage first, which is quite expensive and is not necessary for a car of little value. After all, you don't want to pay more on car insurance than what the car is worth! To determine the best cost-effective strategy, you can look up your car's value at Kelly Blue Book's website.

Are you Financially Stable?

Proving your financial stability is key in obtaining low auto insurance. If you pay your bills on time and have a solid credit score, you will be considered a good risk by an insurer and therefore receive a discounted premium. Here are two other ways to save on your auto insurance premium if you are financially stable.
  1. If you can afford it, you'll often receive a discount on your premium if you pay your policy in-full. Setting up electronic funds transfer online is another way to lower your insurance premium, because it saves the company billing and processing fees.
  2. One of the best ways to get a low auto insurance rate is to have a high deductible. A deductible is the part of the insurance claim that you agree to pay (your insurance company will pay the rest). So if you get into a wreck that causes $2,000 in damage and you have a $500 deductible, you will pay $500 and your insurance company will pay $1,500. Raising your deductible just a few hundred dollars, from $500 to $1,000 in this case, can lower your premium by as much as 30%. If you raise your deductible, just make sure that you have enough cash available to pay the claim (if needed). If you adjust your coverage to assume more risk, you're sure to receive a low auto insurance premium from your insurer.
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