When it comes to car insurance, shopping around is key to getting the best rate. Don’t just go with the first quote you get compare rates from different companies.
Check Independent Websites
Use independent websites like NerdWallet, The Zebra or CarInsurance.com where you can enter your info once and compare rates from multiple insurers. See who offers the lowest price for the coverage you need.
Contact Local Agents
Get in touch with local insurance agents in your area. They represent multiple companies and can provide quotes for you to compare. Let them know you’re looking for the most affordable option.
Consider Smaller Companies
Don’t overlook smaller regional companies. While big name companies spend heavily on advertising, smaller insurers often offer lower rates to gain new customers. Check their reviews to ensure good service and coverage though.
Ask About Discounts
Inquire about all available discounts, like bundling with other policies, good student, safe driver, anti-theft device, etc. The more you can stack, the more you’ll save.
Increase Your Deductibles
If you can afford higher out-of-pocket costs in the event of a claim, increasing your deductibles for comprehensive and collision coverage can lower your premiums significantly.
Shopping around and comparing multiple quotes is the best way to make sure you’re getting the lowest car insurance rate possible. With some time and effort, you’ll find an affordable policy that gives you the coverage you need.
Ask About Discounts From State Farm
State Farm offers many common discounts that can help slash your premium.
1. Student Discounts
If you’re a student, ask about good student and driver’s ed discounts. State Farm gives up to 20% off for students under 25 with a B average or better. They also offer discounts for teens who have completed a driver’s ed course.
2. Safe Driver Discounts
The safer you drive, the more you can save. Ask about State Farm’s safe driver discount for accident-free drivers. You can get up to 26% off just for keeping a clean record. Defensive driving courses also qualify for a discount of up to 10%.
3. Multi-Policy Discounts
Bundle your auto policy with homeowners, renters, or life insurance and you can knock a big chunk off your bill. State Farm’s multi-policy discount gives you up to 17% off. The more policies you have, the more you save.
4. Anti-Theft Devices
Does your vehicle have anti-theft equipment like a alarm system, steering wheel lock or tracking device? Let your agent know. These safety features can earn you a discount of up to 15% for helping deter thieves and reduce risks.
Ask your State Farm agent about all the discounts you may qualify for. Every dollar you can save on your premium helps. With some discounts, you can lower your rate significantly. So check that you’re getting every discount you deserve – it’s an easy way to slash your State Farm bill.
5. Raise Your Deductible
One of the easiest ways to lower your State Farm premiums is to increase your deductible. The deductible is the amount you pay out of pocket for any claim before your insurance kicks in. The higher your deductible, the less risk for State Farm and the lower your rates.
Other ways to lower your State Farm premium include:
- Bundling your auto policy with home or life insurance.
- Maintaining a safe driving record.
- Installing an antitheft device or alarm system in your vehicle.
- Reducing coverage on older vehicles.
- Paying your bill on time. Late or missed payments lead to higher rates.
- Asking about discounts for students, new drivers or affiliations like AAA membership.
Every dollar saved on your premiums adds up over time. Making deductible and coverage changes, improving your driving record and bundling policies are some of the most effective ways to slash your State Farm bill each year.
Drop Unnecessary Coverage
One of the easiest ways to lower your State Farm premium is to reevaluate what coverage you actually need. It’s common for people to pay for extras they don’t really use. Go through your policy line by line and ask yourself if each add-on is truly necessary for your situation.
For example, do you really need rental car reimbursement if you have multiple vehicles in your household? What about roadside assistance if you have it through another service? Take a hard look at coverage amounts too. If your vehicles are older, you probably don’t need full coverage insurance. Dropping to liability only can save you a bundle.
Improve Your Credit Score
Here are a few ways to boost your score before shopping for a new policy.
1. Check your credit report for errors. Errors on your credit report could be lowering your score. Review your credit reports from Equifax, Experian and TransUnion for inaccuracies like incorrect account information, accounts that aren’t yours, or debts you’ve already paid. Dispute them to get them corrected.
2. Pay down your credit card balances. Keep your balances low relative to your credit limits. High credit utilization ratios hurt your score. Pay down balances to 30% or less of your limits. Pay off cards with the highest balances first.
3. Limit new applications. Applying for a lot of new credit in a short amount of time can lower your score. Only apply for new credit when needed. Each application can cause a small, temporary drop in your score.
4. Demonstrate you can handle credit responsibly. If needed, you might open a new credit card and keep balances low to show you can handle credit well. But only do this if you have a plan to pay the balance on time each month. Late or missed payments severely damage your score.
5. Check if you qualify for a secured card. If your score needs a bigger boost, consider a secured card. You deposit an amount that then becomes your line of credit. Use and pay the card responsibly to build your score over time. After about a year, you may qualify to convert it into an unsecured card and get your deposit back.
Improving your score by just a few points could make a difference of hundreds per year on your car insurance premiums. Take the time to check your reports, pay down balances, limit new applications and build a good payment history. You’ll slash your rates in no time.