Auto insurance is something every driver needs, but if your bill is higher than you would like, you have options. Many people don’t realize that there are a variety of things you can do to keep your car insurance costs in check.
Consider reflecting on these six insightful tips.
1. Shop Around
When determining the price of a policy, insurance companies typically factor in information such as your age, driving record, and the type of vehicle you drive. However, each company may give these factors different weights. This means it's possible to get very different quotes for the same coverage.
For this reason, it’s always a good idea to shop around for your car insurance. Sometimes, you can significantly lower your insurance costs by getting quotes from multiple companies and choosing the best offer. However, it's important to keep in mind that the cheapest option isn’t always the best. Research the insurance company you’re considering before making a switch.
2. Bundle Your Policies
Many insurance companies offer discounts to consumers who purchase two or more types of insurance from them. For example, you may be able to save money by purchasing your homeowner’s or renter’s insurance and your vehicle insurance from the same carrier. Adding multiple vehicles to the same policy may also get you a discount. When comparing policies, ask whether you may qualify for a multi-policy discount.
3. Raise Your Deductible
Your car insurance deductible is the amount you need to pay towards a claim before your insurance policy kicks in. The higher your deductible is, the lower your insurance premiums will be. Of course, before you increase your deductible, make sure you have enough cash set aside to cover the cost in case you have to file a claim.
4. Drop Coverage You Don’t Need
Periodically review your insurance coverage to make sure you’re not paying for things you don’t need. For example, if you purchased or leased a newer car, you may have added gap insurance. This ensures you can pay off your loan or lease if your vehicle is deemed a total loss. However, as you pay down your loan, this coverage will eventually become unnecessary.
Also, if you have an older vehicle, you may find that the comprehensive and collision insurance is no longer worth the cost. If the value of your vehicle has reached a point where you could replace it without too much financial stress, you may consider dropping these coverages.
5. Be a Safe Driver
Accidents, speeding tickets, and other traffic violations can raise your car insurance. The safer you are behind the wheel, the more money you can save. Some insurance companies offer “safe driver discounts” to customers who keep their driving records clean for a set amount of time. You may also consider a carrier that uses telematics — a system that collects information about your driving habits — to offer safe driver rewards.
6. Take a Defensive Driving Course
Many states use a points system to identify dangerous drivers. When you’re cited for certain traffic violations, points are added to your license. These points remain for a specified amount of time, and when you get too many, it can negatively impact your insurance rates.
Taking a defensive driving course can help you become a safer driver. In many cases, this can also be used to remove points from your license. Even if you don’t have points on your license, you may be able to get a discount of up to 10% on your insurance premiums by completing an approved course. iDriveSafely offers hassle-free online defensive driving courses that are fun and easy to complete, so get started with lowering your insurance costs today.
Updated 09/11/2024
