How to Get Low-Cost Car Insurance Rates in Your State

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Did you know that the average car insurance premium in the U.S. is almost $1,000 per year? If so, you’re not alone. That number has likely gotten the attention of many drivers. However, it’s not always a bad thing to be aware of such statistics. Knowing what factors go into determining your car insurance premium can help you find ways to reduce it and save money on your coverage. The average cost of auto insurance varies by state and city because of various factors ranging from how much risk an area presents for drivers to how much its residents tend to drive or own expensive cars. In general, car insurance premiums are typically higher in densely populated cities than they are in rural areas; places with high crime rates tend to have higher premiums as well; and drivers who live near toll roads, highways or bridges often see a spike in their rates as a result.

Research Your Options

You may have heard that certain things can improve your chances of getting a lower car insurance rate. To see whether any of these tips apply to your situation, start by researching your options for car insurance coverage. You can do this by contacting your current car insurance provider to find out what coverage options are available to you, as well as how much each one costs. You can also shop around to get an idea of what other car insurance companies are offering. You can use websites such as Policygenius and Insure.com that let you compare rates from different providers in one place. Knowing what types of coverage you need is a good place to start when researching car insurance options. While state laws vary, the typical minimum amount of coverage required is bodily injury liability, property damage liability, uninsured motorist bodily injury, and uninsured motorist property damage—though some states may require added coverage, such as medical payments, underinsured motorist coverage, and/or collision coverage.

Check Your Credit Report

One important factor in determining your car insurance premium is your driving record, but another is your credit history. If you have a clean credit history, then you may be able to get lower car insurance rates. If you have bad credit, then you might be forced to pay higher rates than others. Credit reporting agencies collect information about your personal finances, such as whether you pay your bills on time and how much debt you owe. These factors combined are used to calculate your credit score, which in turn is used to determine your car insurance premium. You can view your credit report for free once every year at AnnualCreditReport.com to make sure there aren’t any mistakes that could affect your rates.

Compare Auto Insurance Quotes

Another way to potentially lower your car insurance premium is to compare auto insurance quotes from different providers before settling on one. You’ll want to make sure the quotes you receive are based on the same level of coverage and driving record so that you can be sure you’re fairly comparing them. The amount you pay will depend on the amount of coverage you select, your driving record, and your risk level as determined by your car insurance company. If you have a clean driving record, then you may be able to get lower car insurance rates by decreasing the amount of coverage you have. For example, going from having full coverage to just liability coverage would lower your premium. That’s because full coverage policies tend to be more expensive than liability policies.

Install a Vehicle Tracker

Another way you can potentially lower your car insurance premium is to install a vehicle tracker. These devices can help you accumulate fewer driving violations, which in turn can lower your rates. For example, a study conducted by Progressive found that customers who installed a device on their car saw an average drop of 22% in their car insurance rates. However, if you have a poor driving record, then a device might not be enough to get your premiums lowered. You’ll want to try all of the tips above first before turning to a device to help lower your rates.

Conclusion

The average cost of auto insurance varies by state and city because of various factors ranging from how much risk an area presents for drivers to how much its residents tend to drive or own expensive cars. In general, car insurance premiums are typically higher in densely populated cities than they are in rural areas; places with high crime rates tend to have higher premiums as well; and drivers who live near toll roads, highways, or bridges often see a spike in their rates as a result. Regardless of where you live, though, there are ways to get lower car insurance premiums. The key is to start by researching your options for coverage and comparing rates from different providers. You can then further lower your premiums by checking your credit report, installing a vehicle tracker, and lowering the amount of coverage you have.