The rate you pay for auto insurance is based on many factors, and some of them are things you cannot control, such as your age and gender. There are also some factors you can control, and saving money on your car insurance is possible if you know what these are so you can take advantage of them. Here are some factors within your control that could help you reduce your premiums on car insurance.

Raising the deductible

One of the main ways people reduce their auto insurance premiums is by raising the deductible on their policy. The deductible refers to the amount of money you must pay, if you file a claim, before the insurance company will pay the rest. Insurance companies pay out less in claims for policyholders that have higher deductibles. Therefore, by raising your deductible, your rates will drop. If you currently have a deductible that is $500, consider increasing the amount to $1,000 or higher. While this will result in having to pay more if you file a claim, it will help you save a lot of money each month on your premiums.

Enrolling in electronic payments

Insurance companies also offer discounts to customers when there is a higher chance the policyholder will pay their bills on time. This is why they may encourage you to enroll in electronic payments. Another option is to pay your entire insurance bill upfront. This could help you save up to 11% on your premiums, and this is a significant amount.

Choosing the right car

The car you choose to have will also affect the rates you pay, and this is a factor that is also within your control. To get a lower rate, you could choose a car that offers outstanding safety features. Safe-car features is a common type of discount insurance companies give. Another option is to choose a car that is older, which would make it less valuable. The value of your vehicle will also affect the amount of money you pay for insurance coverage. Avoiding sports cars and luxury cars is also important if you are looking for a way to cut your insurance rates.

There are so many ways to save money on car insurance, and there are a lot of factors within your control for this. If you would like to get a quote for auto coverage, contact an auto insurance company like Nelson Insurance Agency today.