With the cost of fuel continuing to rise, many drivers are wanting to reduce their auto insurance rates to reduce the overall cost of transportation. Auto insurance rates are known as being flexible when it comes to each individual driver, as the rate is based on the driving record and the amount of time spent behind the wheel. Fortunately, there are several ways to reduce the rate by making a few adjustments.
Ask for a Low-Mileage Discount
If you work from home or only drive a few miles to and from work, you will likely qualify for a low-mileage discount. Less time on the road reduces the risk of an accident, which your auto insurance company will recognize. Provide proof of the amount of miles you drive by providing documents from your most recent oil change to your car insurance company.
Buy a Cheaper Car
The type of car you drive and the age of the car greatly determines your insurance rates. Sports cars or vehicles with only two doors often cost more to insure as they are more likely to be driven at high speeds. Luxury cars that have a higher value or price tag are also likely to drive up car insurance rates due to the high cost of parts. Trade in your vehicle for a basic model that is several years old for an easy way of potentially saving hundreds of dollars each year with insurance.
Increase Your Deductible
Although most people assume that having a low deductible will cost them less in the event of an accident, it can actually save more annually. By increasing your deductible to $1,000, it can save 20 to 40 percent each year for a great way to save. Similarly, avoid paying the insurance in installments, which costs more annually than paying it all at once.