How To Lower Your Automotive Insurance Payments

An auto insurance policy is a necessary part of owning your vehicle because it helps protect you against financial issues in the case of an accident or collision. However, depending on your plan and your driving record, your monthly auto insurance payments can become a financial burden. Thankfully, there are a handful of things that you can do to lower your auto insurance payments to a more moderate level.

Increase the Deductible

The easiest thing that you can do to reduce your monthly insurance payments is to increase the deductible on your plan. The deductible is the amount that is taken off of the claim that you file with your insurance company. For instance, if you have an accident with $1,000 of claimed damages, and your deductible is $500, your insurance company will pay you $500 if the damage is covered by your plan. Keep in mind that increasing the deductible means that you'll have to pay more out of pocket when you submit a claim, so make sure that you can afford a higher deductible in the event of an accident before you change your plan.

Defensive Driving Courses

Check with your insurance company to see if they offer a discount on your insurance premiums if you have completed a defensive driving or another type of driving course. These courses help teach you how to handle certain risky situations on the road. If your insurance company will knock a few dollars off your monthly payments if you complete one of these courses, they can quickly pay for themselves.

Improve Your Credit Score

Many insurance companies will look at your credit score to determine what rate to give you with automotive insurance (and other types of insurance as well). If your current auto insurance payments are too high, try to boost your credit score by a few points and then apply to a new carrier or a new plan — likely you will see a slight reduction in your monthly rates.

Shop Around

The best way to make sure that you are paying the lowest possible auto insurance payment each month is to change your policy every year or so (or at the very least, look around to make sure that you're with the very best option). This allows you to take advantage of new customer discounts and avoid incremental increases, which can result in significant cost savings over time.