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How To Find The Best Budget-Friendly Car Insurance

Whether you’re looking to switch insurers or this is your first time picking out a policy, there is a lot to consider in finding the best budget-friendly car insurance.

Of course, the amount you’ll wind up paying depends on a variety of factors, such as your car make and model, age, state of residence, driving record, and credit history. 

In the U.S, the average cost of car insurance is $1,500 per year.

You might pay a different amount depending on your needs.

Most car owners usually look for affordable insurance, but, as you probably already know, finding cheap car insurance isn’t always easy.

Here are a few different avenues you can take to obtain affordable car insurance:

How To Find The Best Budget-Friendly Car Insurance

Complete a Defensive Driving Course

A safe driving record indicates you are a low-risk driver, which is key to lowering your car insurance costs. In fact, insurance companies tend to reward drivers with discounted rates if they have a clean slate.

One way to prove that is by staying accident-free and not racking up speeding tickets or other moving violations in a given time period.

Another way to lower your costs is by completing a defensive driving course, which will teach you all the ins and outs of safe driving.

Defensive driving courses are state-approved, and in many cases, completing them can get a speeding ticket dismissed and keep points off your driving record.

They also help reduce the base rate of car insurance premiums.

For example, if you reside in New York, you will get a 10% insurance discount after completing a defensive driving course.

Shop Around for Cheaper Car Insurance Rates 

You can also find cheap car insurance by shopping around. But with countless options out there, it can certainly be difficult to determine the right insurance.

As such, do your research by checking websites that regularly publish listings of cheap car insurance.

Additionally, compare quotes from different insurance companies using online price comparison tools to make a more informed decision.

Increase Your Deductibles

Your car insurance costs will be less expensive if you pay higher deductibles, which is the money you must pay out of pocket before your coverage kicks in.

Lower deductibles lead to a higher premium, and your insurer will cover most of the costs of auto repairs if you get into an accident. Conversely, they will pay less when you opt to pay higher deductibles.

You can save at least 5% to 10% on insurance costs and get cheap car insurance by paying higher deductibles.

Some insurers will likely lower your deductible if you maintain a clean driving record for an extended time period.

Look for Usage-Based Insurance

Usage-based insurance, also known as pay-how-you-drive (PHYD) or pay-as-you-drive (PAYD), is a type of car insurance that largely benefits safe drivers who, you guessed it, don’t rack up a lot of mileage.

It is the cheap car insurance you need if you work from home or otherwise don’t spend a lot of time on the road.

Usage-based insurance companies track mileage and your driving behavior and give you a driving score, which is used to calculate the insurance premium.

Follow These Tips to Get Affordable Car Insurance

Ultimately, having a history of safe driving is what will allow you to get affordable car insurance.

But by completing defensive driving courses, increasing your deductible, and shopping around for the best options, you’re now in the driver’s seat to get the best bang for your buck.

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