The best way to lower your car insurance rates in Berwyn is to compare quotes from different companies.
Here are some tips to save hundreds:
1. Shop Around at Multiple Insurers
Don’t just go with the first company you find. Compare quotes from at least 3 to 5 insurers to make sure you’re getting the best deal. Some of the cheapest in Berwyn include Geico, Progressive, and State Farm.
2. Increase Your Deductibles
The higher your deductibles, the lower your premiums will be. If you can afford to pay more out of pocket in the event of a claim, increasing your deductibles to $500 or $1000 can lower your rates by up to 30%. Make sure the deductible still leaves you able to cover costs if an accident occurs.
3. Drop Unnecessary Coverage
Do you really need collision or comprehensive coverage on an older vehicle? Dropping these can save you big. Also consider dropping medical payment coverage or towing coverage if you have it through another provider.
4. Bundle Multiple Policies
Most insurers offer bundling discounts if you have multiple policies with them, such as home and auto. Bundling in Berwyn can save you up to 20% on car insurance. See if bundling makes sense for your situation.
5. Maintain a Good Driving Record
The biggest factor in your car insurance rates is your driving history. Avoid traffic violations and accidents to keep your record clean. Take a defensive driving course to lower your rates and qualify for additional discounts. A clean record can save you hundreds each year.
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Ask About Discounts to Lower Your Premium
When getting car insurance in Berwyn, one of the best ways to lower your premium is by asking about available discounts. Insurance companies offer many discounts, but you have to ask about them to get them applied to your policy.
1. Multi-Policy Discount
If you have your homeowner’s or renter’s insurance with the same company, ask about a multi-policy discount. Bundling multiple policies together can knock 10% or more off your premiums.
2. Safe Driver Discount
Do you have a clean driving record? Insurance companies will often reward safe drivers with a discount for 3-5 years of violation-free driving. Make sure to ask about “safe driver” or “good driver” discounts.
3. Student Discounts
College students, ask about good student discounts. If you maintain a B average or higher, you may qualify for up to 15-25% off. Provide a copy of your latest report card or transcript.
4. Usage-Based Discounts
Many companies now offer usage-based insurance where you pay based on how much you actually drive. Ask about programs where you install a small device in your vehicle to track your mileage. Low mileage drivers can save up to 30% with these programs.
5. Anti-Theft Devices
Finally, ask about discounts for anti-theft devices like alarms, GPS trackers or immobilizers. Installing these security features on your vehicle can lower your risk of theft claims and may drop your premiums by 5-25%.
With some research into the discounts available and a quick call to your insurance agent, you’ll be well on your way to reducing your car insurance costs in Berwyn.
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Raise Your Deductible to Reduce Costs
Raising your deductible amount is one of the easiest ways to lower your car insurance premiums. It includes
1. Choose a deductible you can afford
Go for the highest deductible you feel comfortable paying in the event of a claim. If $500 is doable, increase it to $1,000. If $1,000 won’t break the bank, try $2,500 or even $5,000. The more you raise it, the more you stand to save. For example, increasing from $500 to $1,000 could reduce your premium by 15% to 30%, and going up to $2,500 may cut it by 30% or more.
2. You’re still covered for large claims
Don’t worry, your high deductible only applies to small claims. If you have a major accident with costs that exceed your deductible, your insurance will cover the remaining expenses up to your policy limits. A higher deductible just protects your insurer from small nuisance claims.
3. Savings vary by company and coverage
The exact amount you’ll save with a higher deductible depends on your insurer, location, coverage levels, and other factors. But you can expect to pay quite a bit less overall, even after accounting for the higher out-of-pocket costs for small claims. Get quotes from different insurers at different deductible levels to see the potential savings for your situation.
4. Consider a higher deductible for comprehensive and collision
Liability coverage protects other drivers, so keep a low deductible for that. But you’ll see the biggest premium drops by raising the deductible for comprehensive and collision—the coverages that protect your own vehicle. If your car is older, you may opt to drop these coverages altogether and save even more.
Maintain Good Credit to Qualify for Better Rates
Maintaining a good credit score is one of the best ways to qualify for lower car insurance rates in Berwyn. Insurance companies view people with high credit scores as less risky to insure since they are more likely to pay their bills on time.
Check your credit report regularly to ensure there are no errors. Dispute any incorrect information with the credit bureaus to get it corrected as soon as possible. Pay your bills on time each month, as payment history is the biggest factor in your score. If needed, you can set up automatic payments to avoid missing any due dates.
Keep low credit card balances. A high balance on your cards, especially if it’s close to your limits, can hurt your score. Pay off as much of your balance as possible each month. If needed, you may want to consider consolidating high-interest debts to lower your payments.
Limit new applications for credit. Each new application can result in a small drop in your score. Only apply for new credit when needed. New accounts will also lower the average age of your credit, which makes up about 15% of your score.
You should also check if you qualify for a secured card or credit-builder loan. These types of accounts report to the credit bureaus so you can build your score over time with on-time payments.
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Review Policy Options to Remove Unneeded Coverage
One of the best ways to lower your car insurance premiums in Berwyn is to re-evaluate your coverage options. You may be paying for more insurance than you actually need.
Here are some ways to trim the fat:
1. Remove Collision Coverage on Older Vehicles
If your vehicle is more than 5-10 years old, drop collision coverage. The payout from your insurance company if your car is totaled wouldn’t exceed the actual cash value of the vehicle, so you’re essentially paying for coverage you don’t need.
2. Increase Your Deductibles
Raising your deductibles, the amount you pay out of pocket before insurance kicks in, can lower your premiums considerably. For example, increasing your deductible from $500 to $1,000 can save you up to 25% on premiums. Just make sure you can afford the higher deductible in case of a claim.
3. Drop Unnecessary Add-Ons
Do you really need roadside assistance, rental car coverage or accident forgiveness? While convenient, these add-ons significantly increase your premiums. Drop them to save money. You can always add them back on later if needed.
4. Reduce Coverage on High-Mileage Vehicles
If you drive an older vehicle with high mileage, you only need liability coverage to protect other drivers. Drop comprehensive and collision coverage which only protect your own vehicle. The money you save on premiums can go towards a newer car.
5. Consider Usage-Based Insurance
If you don’t drive much, usage-based or pay-as-you-drive insurance can save you money. These policies track your driving using a device in your car. The less you drive, the bigger the discount. Savings can be up to 30% for low-mileage drivers.
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Conclusion
Reviewing your coverage in detail is one of the best ways to lower your car insurance rates in Berwyn. Make sure you’re not paying for more insurance than you actually need.