5 Ways to Lower your Auto Insurance Rate

Americans are required to own and insure a vehicle in most cities in the United States due to the lack of public transportation and fragmented wide-spread cities. 

In addition to paying monthly car loan payments, drivers are often stuck paying high auto insurance rates when they could be paying less.  See these five tips on how to lower the rate of your auto insurance.

1. Shop Around

The internet allows us to access a wide variety of information and this information can be used to your advantage when it comes to auto insurance.  A variety of free websites allow you to compare the costs of auto insurance provided by different auto insurance companies. 

2. GPS Tracking Discount

Many insurance companies allow you to sign up for a GPS tracker in order to lower your monthly auto insurance rate.  The GPS Tracker will monitor your driving speed, abrupt braking or steering motions, and other metrics to determine whether you are a “safe” driver.  If you meet the criteria, you are eligible for anywhere between 2 – 10% of a discount on your auto insurance rate.

3. Type of Car you Drive

That Corvette looks nice in your driveway and purrs like a kitten (not to mention that it runs as fast as a cheetah too), however, insurance companies charge more for certain types of cars, typically sports cars or convertibles, and will raise your auto insurance rate for that type of a vehicle.  If you will be driving the kids back and forth from school, consider a Prius or a Honda, instead of a McLaren or a Mustang.

4. Keep your auto maintenance receipts

Adhere to your car’s timelines for oil changes, brake replacements, and other key maintenance work periodically performed on the automobile and make sure you save those receipts!  Whether you are paying Jiffy Lube or performing the maintenance yourself, certain auto insurance companies allow you to turn in the maintenance receipts for an automobile rate discount of 1 – 8%.  Auto insurance companies like to see that you maintain your vehicle as there is less of a chance that it will malfunction.  This is a win-win solution as your car is also less likely to leave you stranded.

5.  Don’t get in accidents or pulled over

This is easier said than done, as most individuals who pay exorbitant auto insurance rates pay that amount due to previous car accidents.  If you have a less than perfect driving record, focus on moving past any previous incidents and try not to make the same mistakes again. Be vigilant in your driving to ensure you are driving attentively and safely.  Always be aware of your surroundings and remember you are driving a 1-ton death machine, so operate with caution!

About Author

Samantha Davis - Lead Reporter

Samantha Davis is a lead reporter for Finance Hound. She covers the financial world; specializing in autos, consumer finance and insurance. She enjoys reading with a glass of wine, and traveling with her lovely family.