There are a lot of myths surrounding car insurance out there, from the color or sportiness of your car affecting your rates (or not) to the question of accidental coverage for instances when a driver other than the car’s owner is behind the wheel.
To avoid confusion, it’s important to rely on research conducted by credible companies and organizations, such as the big study from Insurance.com on the impact different tickets have on your car insurance rate.
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How to Lower Your Car Insurance Premiums
If you want to decrease your auto insurance premiums, then don’t fall for unproven methods and myths in hopes of saving money. Instead, consider these tried-and-true ways for lowering your car insurance bills:
Increase Your Deductible
One of the most popular ways people try to lower their auto insurance premiums is the deductible. Increasing your deductible isn’t always the best approach – it might cost you more than it saved you in monthly payments if you’re involved in a serious accident – but for some people, it can definitely relieve the regular financial burden of insurance payments.
Recent survey findings suggest that raising your deductible from $250 to $500 could result in an average 7% reduction in your auto insurance premiums, while $250 to $1000 results in an average of 9% savings for American drivers in the survey. For drivers who increased their deductible from $500 to $2000 saved an average of 16% on their car insurance premiums. This could be a great way to save money if you’re a safe driver, but be sure to have emergency savings as a backup in case you need to pay the higher deductible later on.
