This question comes up frequently when we either buy a new or used car, or when our car renewal comes around every 6 or 12 months. The State of Mississippi law requires you to keep a minimum in liability insurance on all cars and if you must finance a car the lender will require collision coverage as well.
Here are some tips that will help you lower your car insurance rates
- Before Buying Car, Compare Insurance Costs
Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety.
- Obtain Higher Deductibles
By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.
- Reduce Coverage on your Older Car
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. You can ask your bank what your car is worth or you can look it up online at Kelley’s Blue Book. Review your coverage at renewal time to make sure your insurance needs haven’t changed.
- Maintaining a Good Credit Record Can Help
Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
- Ask what Additional Discounts are Available
Companies offer discounts to policyholders who have not had any accidents or moving violations for several years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student and has taken a driver’s education course, you may also qualify for a lower rate.
We at USA Insurance Companies are considered the leading low-cost car insurance company in South Mississippi. Please visit our website at www.usainsuranceco.net to find one of our 7 convenient offices. All our staff members are well trained and ready to help you find the most affordable car insurance rates for you.