Car insurance is essential to ensure your financial security behind the wheel. It doesn’t matter if you only have basic liability insurance or complete auto coverage. You need to make sure you get the best deal. Are you looking for ways to lower your car insurance? Here are 15 ways to save on car insurance.
Car insurance costs vary for each driver depending on where they live, what insurance company they choose, and what coverage they have. It is essential to understand what the average driver pays when you are trying to save money on your car insurance.
Based on the most recent figures from the National Association of Insurance Commissioners 1, the average person spent $1190 on car insurance in 2018.
. The NAIC data shows that car insurance premiums increased by 30% between 2014-2018, even though insured vehicles have only increased by 7%. 1.
AAA data shows that the average cost of car insurance for new cars in 2020 was $1,202 2. These numbers are close together. This means that auto insurance may be an expense you need to add $100 per month when you plan for a new vehicle purchase.
How to save on car insurance costs
There are many ways to save money on your car insurance. You can save money on car insurance by knowing how much you need.
Take advantage of multi-car discounts
An auto insurance company might offer a quote for one vehicle. This is because the company may charge more per vehicle than if they provided multiple drivers or vehicle coverage. Because they want your business, insurance companies will offer you what amounts to bulk rates. If you bring in more business, they may offer you a discount.
Ask your agent if you are eligible. Multiple drivers must reside at the same address and be related by blood or marriage. A discount may be available to two unrelated individuals, but they must usually own the vehicle together.
You will pay more for insurance if one of your drivers is a teenager. You may be eligible for a good-student discount on your coverage. This usually lasts until your child is 25. These discounts can vary from as low as 1% to as high as 39%. Be sure to prove to your agent that your child is a good student.
Some companies offer discounts on auto insurance if you have other policies, such as homeowners insurance. Some companies may also provide a discount on auto insurance if you have different policies with the company, such as homeowners insurance.
Pay attention to the road
Also, it would be best if you were a safe driver. While this should be obvious, it is essential to mention the age of increased in-car distractions. You can avoid more accidents and moving violations if you are more aware. This will reduce your insurance rates. Travelers offer safe driver discounts ranging from 10% to 23% depending on your driving record.
Points are usually assessed to drivers for moving violations. More issues can result in higher insurance premiums (all things being equal).
Learn defensive driving
Insurance companies may offer discounts to drivers who have completed a defensive driving course. Drivers might also be eligible to lower their points by taking defensive driving, accident prevention, or another method.
Before signing up for any class, check with your agent/insurance company for this discount. The course’s expense and cost must be reflected in insurance savings. A driver must also sign up for an approved course. Each state has its regulations regarding accredited defensive driving courses. GEICO makes it easy to determine the rules for each state.
Reduce the size of your vehicle
Although buying a large SUV might sound appealing, ensuring it can cost more than insuring your small, safe commuter car. Many insurers offer discounts if you purchase a hybrid vehicle or another fuel type. 7 Farmers provides a 5% discount for hybrid or alternative fuel vehicles.
It’s possible to feel good about the environment while saving money on your insurance. Before you purchase, find out the exact rates for each vehicle.
Increase your deductibles
You can choose a deductible when you are shopping for car insurance. This is the amount you would need to pay before your insurance pays the bill in case of theft, accident, or any other damage to the vehicle. Deductibles can vary from $250 to $1,000, depending on which policy you have. However, the catch is that the annual premium will be higher if the deductible is lower.
The premium will be lower if the deductible is higher. Ask your agent how your premium could be affected by raising your deductible. You may see a significant increase in your annual premium. Raise the deductible to avoid increasing your premium by filing more minor claims.
Increase your credit rating
The driver’s driving record plays a significant role in auto insurance costs. An insurance company could be charged a lot more for a driver who has had a lot of accidents. Sometimes, people are surprised to learn that insurance companies might consider credit scores when determining insurance premiums.
Your credit rating is essential. Michael Barry, Senior Vice President and Head of Media Relations at the Insurance Information Institute, puts it this way:
It is necessary to consider the location when estimating car insurance rates
You are unlikely to move to another state because of its lower car insurance rates. It would be best if you considered the possibility of a change in your car’s insurance rate when you plan a move.
Reexamine Your Coverage
It can be dangerous to drop certain coverages. It is impossible to predict when or if an accident will happen. However, dropping collision or comprehensive coverage might make sense if your automobile is ancient.
This is because if the car were to be in an accident, it would likely be totaled by the insurance company. It may not be a good idea to purchase if the car’s value is less than $1,000 and collision coverage costs $500 annually.
Receive Discounts on Anti-Theft Device Installation
Anti-theft devices can help individuals lower their annual premiums. GEICO offers 25% savings if you install anti-theft devices in your car.
You should ask your insurance company to inform you which devices can reduce premiums. LoJacks and car alarms are two devices you may want to ask about.
If you want to lower your insurance premium by installing an anti-theft system, consider whether it will be worthwhile to invest in the device.