10 tips to reduce car insurance costs

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If you opt for comprehensive car insurance coverage in the United States in 2021, statistics tell us that the average you will pay is $ 1,674 for your annual premium, or $ 139.50 per month. That’s a lot of money, especially when the cars themselves are getting more advanced and more expensive.

It’s times like these when you need serious cost-cutting power and with insurance you can make those cuts. Insurance is one of those cool areas of auto grocery shopping where you can most actively work to make cuts, and in today’s blog we’re going to share 10 great ways to do it.

1. Get discounts for multiple cars

For many years the average number of vehicles per family has hovered between 1.8 and 2, so it’s fair to say that a large number of American families have more than just one vehicle at home. For those households dealing with 2 or more cars, you can achieve savings of up to 25 percent depending on the supplier you are using.

According to valuepenguin.com, Geico offers the best potential rates of up to 25% less, but State Farm, Progressive and Travelers also offer discounts.

So, if you own 2 or more cars, consolidate them into one insurance policy and generate savings that everyone can enjoy.

2. Consolidate insurance with a single provider

Your family may no longer have cars, but they may also have multiple insurance policies from different providers. Hardly anyone buys all of their insurance at exactly the same time, and everyone is encouraged to shop around for policies (see below) so it’s entirely possible that you end up with multiple providers.

If you make a few changes to your various insurance policies, consolidating the various policies into one agreement with a single provider, they will almost certainly offer you a better deal.

Never forget, insurance is a ruthless game; a dog-eating dog industry. If the result is getting you into their books for more than just auto insurance, they’ll be willing to make it worth it!

3. Keep track of your driving

For several years, major auto insurances have offered a unique idea to those who want to take advantage of significant discounts on their insurance without having to spend years of trouble-free driving first: they install a tracking device on their car. At All State, they call it “Drivewise”, and Liberty is called “Safeco”, and so on.

Basically, you agree to have a tracker plugged into the OBD-II port or an app that tracks your driving via your phone, whatever the company uses, and then drive as usual. By accepting you can get discounts, but as the data comes in and you can show your steady hand behind the wheel, they will become more generous.

4. Advanced driving courses

If you’re not comfortable with driving trackers, then an alternative method of demonstrating your driving prowess and reliability, and that’s taking advanced courses in things like defensive driving. Typical discounts range from 5 to 20 percent and are generally eligible for drivers under the age of 25 and for drivers over the age of 60, both times where insurance can be disproportionately high depending on the circumstances.

The best-known potential discounts are granted by Geico to drivers aged 50 and over taking defensive driving courses, ranging from 5 to 20 percent. This is a great discount method not only for the financial benefits, but also because it makes you a better driver and you will certainly be safer on the road.

RELATED: How to Get the Cheapest Auto Insurance Rates Possible?

5. Compare, compare, compare

Earlier we said people are told to shop around, so we said consolidate into one supplier. This advice is still true, but it doesn’t mean you can’t shop around for that supplier yet. Comparing insurance rates has never been easier thanks to free online platforms like thezebra.com and insurify.com, among others.

It’s not as time-consuming as it used to be, but it can be a little tiring to print quotes or read details from different vendors. It’s worth it, though. This is a service that you will sign up for from year to year, so it is worth investing some time to find out if the provider is really worth what they are quoting or not.

6. Upgrade your car’s storage space

If you are moving and still looking for a place, try going somewhere with a garage. You can get small but useful discounts of up to about 5 percent when you can show your insurance company that you have a safe and secure place to store your car every night.

If your postcode is a “problem postcode” for the insurer – referring to those postcodes with higher per capita crime rates – then there’s not much you can do about it unless you leave the entire area, but you can improve your chances by getting a secure lock within that zip code.

7. Pay a higher deductible

The deductible refers to the amount of money you tell the insurer that you are willing to pay in the event of an accident and a claim against your policy. Some people put their deductible as low as possible, which means that if you really have an accident, your insurance will cover more, but it also means your premium will be higher.

For those who have a well-founded belief that they are safe drivers and are very rarely at risk of an accident – for example, hardly any people around where they drive; they don’t drive very often, etc. – then they could offer a higher deductible in exchange for a lower premium. If the risk of loss is low, it is worth taking that little gamble.

8. Work on your credit score

Like so many things in normal life, your credit score has a serious impact on your auto insurance. The basic rule regarding insurers is that if you have a low credit score then you are more of a liability and therefore your annual premium will be higher.

According to the Experian credit rating agency, “Many auto insurance companies use a credit-based auto insurance score to help them decide whether to hire you as an insured, as well as the premium you will pay if they do.”

It is not in all states, as it happens. California, Hawaii, Massachusetts, and Michigan limit or prohibit the use of credit details to determine insurance premiums. In most places, however, you can expect there to be some impact. The difference can also be huge. On the same vehicle, someone with a “Very Good” credit rating may be quoted as $ 1,508, while someone with a “Bad” rating will receive $ 2,940.

9. Enhance your anti-theft security

If you are currently a holder or are planning to get comprehensive insurance for your vehicle, making sure you have a top-notch alarm system can be a great way to lower your premiums. The reason for this is that comprehensive insurance covers break-ins, while liability-only insurance and other more limited forms do not. Increasing your existing security with a mechanical immobilizer, wheel chocks and tracking devices can create savings of up to 10 percent depending on the supplier.

It should be noted, however, that for some it would be a counterproductive discount, firstly because you have to opt for more expensive full coverage in the first place to benefit from it, and secondly because you may also have to spend money buying upgrades for your car if you don’t. has already.

10. Cut coverage or get liability only

Finally, to reduce car insurance costs, you can take the time to review your policy summary and figure out whether or not you have an insurance package that you really need. It could be that you’re sitting on a policy that you’re paying extra for to get roadside assistance, courtesy car supply, and other protections that sound good but don’t really provide you with any real value or safety net.

A good example of this can be seen in auto insurance policies with full coverage for a vehicle that is already 10 years old and beyond its peak. Why bother paying so much insurance when the total cost of the policy comes up to a significantly higher percentage of the total value of the vehicle. Consider cutting the fat on your policy. Better yet, for older cars, stick to liability-only insurance. You can keep a lower deductible and still get cheaper insurance overall.

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