Car insurance premiums can add up, but coverage is often required in most states. Depending on your state, you’ll need to have a certain amount of liability insurance at minimum. This provides coverage to pay for the other person’s vehicle or medical expenses if you are at fault for an accident.

According to USA Today, car insurance rates are expected to increase by 8.4% in 2023. That said, there are still plenty of ways to lower your premiums and save some money.

Whether you are a young driver or an experienced one, understanding the factors that influence your car insurance premium can help you find ways to reduce costs. Let’s look at some tips to lower your car insurance premiums.

Choose the Right Car

The type of car you drive has an impact on your premium costs. If you want to lower your premium, pick a model with a good safety rating and fewer bells and whistles.

If you’re in the market to buy a car, consider visiting sites like Cars.com to compare features and prices. Then, search to see if the car may cost more or less to insure. As a general rule of thumb, you can stick with cars that have smaller engines and aren’t known for having high theft rates. The less expensive the car is, the more likely it will cost less in terms of insurance premiums.

Shop Around

When it comes time to renew your policy, shop around for a better deal before signing on the dotted line. You may find another provider who can offer you a better rate than what you are currently paying—all it takes is a little bit of research and comparison shopping.

The Insurance Information Institute (III) recommends gathering quotes from at least three different insurers before you make a decision. Most insurance websites allow you to get a quote online by filling out a short form. This saves you time and energy rather than having to call multiple insurers one-by-one.

Take Advantage of Discounts

Don’t be afraid to ask about discounts either. Many companies offer incentives such as discounts for good grades if you are adding a teen driver or discounted rates for drivers over 55 years old. Most larger insurance companies provide a discount if you bundle auto insurance with renter’s or homeowner’s insurance.

Other discounts include completing a safe driver program, having certain safety features on your car, or not filing any claims in recent years. Each insurer offers different discounts and it never hurts to ask if there are specific ways for you to lower your car insurance premiums.

Improve Your Credit

Credit is another factor that impacts car insurance rates. While you can’t control other factors such as being a young driver, for example, you can work to improve your credit score. Some insurers look at your credit to determine how you manage your finances and pay bills. A lower credit score can result in a higher premium.

To increase your credit score, start by paying down some of your debt – especially high interest debt. Also, keep your credit card balances below 30% of your total utilization rate. Check your credit report for free each year using AnnualCreditReport.com to make sure there are no errors that you need to report.

Increase Your Deductible

Raising your deductible is one way to get cheaper car insurance premiums. The higher deductible means that in the event of an accident or other incident where damages need to be paid out, you will be responsible for more upfront rather than the insurer footing more of the bill later on down the road.

This will lower your monthly payments but make sure that if something does happen, you have enough money saved up so that you won’t be stuck paying out too much all at once.

Lower Your Card Insurance Premiums With These Tips

Being able to lower your car insurance premiums doesn’t have to feel like mission impossible! By choosing the right vehicle, shopping around for better deals, improving your credit and increasing deductibles, drivers can save money on their monthly payments without sacrificing coverage or peace of mind while they are behind the wheel.

With these simple changes and adjustments, anyone can see their car insurance premiums go down while still maintaining quality protection when they hit the roads!