How to Lower Your Car Insurance Renewal Premium

There are many things the average driver can do to lower their insurance premium when it comes time for a car insurance renewal. Every driver will want to pay less and get more for their money, and the obvious answer is to shop around for a cheaper quotation.

Items Needed:

• Computer
• Internet Connection
• Telephone
• Your Current Policy Papers
• Your Car Details

Step 1 – Credit

Your credit history is highly important to the price of your car insurance premium renewal. If you are changing carriers, the new carrier will run a credit check on you and find out your level of credit for the previous year. If you have been declined credit or your rating has lowered in the preceding 12 months, you may have to pay more for your renewal. Before you decide to switch companies, send off for a credit report and find out how well you have rated over the last year.

Step 2 – Older Vehicles

There are two ways you can reduce your premium price for an older vehicle. You can have it classified as an ‘Antique’ vehicle and get a quote from a specialist company, or, if it does not fall into the antique bracket then you can reduce your level of coverage. If the vehicle is of a lower value, you may see fit to reduce the policy coverage to the basic minimum legal amount required. Check the ACV of your vehicle by looking in the Kelley Blue Book.

Step 3 – Raise your Deductibles

Ask about having a higher deductible. What money you save on the monthly cost of your premium you could put into a savings account to cover your deductible in the event of a claim. If you don’t claim, you would be able to go and treat yourself.

Step 4 – Combine your Coverage

Speak to your auto insurance provider and ask if they offer home insurance. If they do and they will allow you to combine your policies, you may qualify for a discount on all the policies you hold with the same carrier. This can apply whether you are a homeowner or a renter. The more money you put into the pocket of the insurance company, the more discounts they will give you for your business.

Step 5 – Lower your Miles

How many miles do you cover in a year? You may actually fall below the high mileage threshold that some companies set for drivers who commute. If your average yearly mileage is lower than most, you can talk to your insurance provider and ask about low mileage discounts. It is possible they will offer a small percentage off your policy price, because the fewer miles you drive, the less chance you have of being involved in an accident.

Step 6 – Women

Women drivers are being offered a slightly lower premium rate than male drivers. You can look at the possibility of being the main policy holder and adding a man to the policy. If the woman of the household can be offered a discount and the man can be placed as a named driver, there is an opportunity for saving money. Be aware of this however, because if the man has a bad driving record or bad credit you may end up being punished for it on your policy.  Check this out prior to agreeing to anything. Always remember that car insurance cancellation is important if you change your carrier to a new one. Advise the previous provider of the change.