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Three Secrets To Lowering Your Car Insurance Premium With Average Credit

by Amy Walters

Car insurance is a major expense for many people. In 2010, the average driver in Texas paid nearly $1,500 per year for car insurance. Fortunately, there are several things that you can do to lower your car insurance premium even if you have average credit. Below are three of the secrets to lowering your car insurance premium:

Raise Your Deductible

Your deductible, which is the amount of money that you will need to pay yourself before insurance, has an inverse relationship with the premium. The more you pay for your deductible, the lower your premium will be. Therefore, you will be able to save a lot of money on your premium if you raise your deductible.

The average car insurance deductible is around $500. You should consider raising your deductible to at least $1,000. Even though raising your deductible can help you save a lot of money on premiums, you should avoid raising it too high. You could go into debt paying out-of-pocket expenses if you get into a car accident and have a very high deductible.

Inquire About Discounts

You may be eligible for several discounts. Most car insurance companies will give you a discount for installing an anti-theft device on your vehicle. You may also be able to save up to 10 percent on your premiums if you take a defensive driving course. If you are under the age of 25 and are in college, then you may be able to save up to 20 percent on car insurance. Most companies require that you have at least a B average in order to qualify for a good student discount.

Furthermore, driving safe will help you save a lot of money on car insurance. In fact, you may be able to save up to 45 percent on car insurance if you are a safe driver.

Compare Quotes

If you think that your premiums are too high, then you should not hesitate to start looking for another auto insurance company. Shopping around will allow you to get the cheapest car insurance quotes in Texas, or any state for that matter.  Ideally, you should compare the rates of at least three different companies.

You do not have to spend a fortune on car insurance. You can save a lot of money by raising your deductible. You may also want to ask your car insurance company about discounts that they offer. Additionally, comparing quotes will help you save money.


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