The average cost of auto insurance for new vehicles is around $1,202/year. Many components go into your Auto Insurance rates, everything from the zip code you live in to your credit rating. Finding the best ways to save on your auto insurance is a lot like saving on your home insurance. (If you haven’t seen our blog post on how to save on your home insurance, feel free to check that out now.) So, we’ve gathered some of the best ways you can lower your auto insurance and help ensure you continue to get the best price for you.
1) Shop Around
One of the best ways to find the best price is to shop around and get price quotes from different companies. When looking for auto insurance, you’ll find that prices tend to vary from company to company. When you work with an independent agency like ours, we make this part easy on you. We take care of sending off for multiple quotes for you and then present you with our findings to help you choose the right auto insurance policy for you.
2) Ask for a Higher Deductible
A deductible is the price you pay before you insurance kicks in. Basically, the higher the deductible, the lower the premium, the more money you save in the long run.
3) Reduce Coverage on Older Cars
As your car gets older, it may be best to stop certain coverages. Once your vehicle is worth less than 10 times the price of the premium, some coverages just won’t be cost effective. It is suggested that the owner should consider dropping collision and/or comprehensive coverages from their policy is this is the case. It’s a good idea to review your coverage around renewal time to see if any of these changes need to take place.
4) Buy Your Homeowners and Auto Insurance from the Same Insurer
Many insurance companies have discounts in place when you buy more than one policy from them. Some reduce rates for buying home and auto together and some reduce rates for multiple auto policies. It’s best to check with your insurance agent to see if any of these options would be best for you.
It’s also good to remember that sometimes certain policies may remain cheaper if they are bought through multiple companies.
5) Maintain a Good Credit Record
A lot of people don’t realize this, but auto insurance companies use credit ratings when setting their prices. So, it’s important to protect your credit score. Do this by paying your bills on time, keep you credit balances as low as possible, and don’t take on more credit than what is necessary for you. It’s also a good habit to check your credit score regularly so if any issues do arise, you’ll be able to get them fixed quickly.
6) Stay with the Same Company
A lot of companies offer discounts or coverage bonuses when you are with them for multiple years. So, if you find a company that works for you, it may be profitable for you to stay on with them for the foreseeable future. That being said, if a company is not working for you, it is completely okay to switch to a better deal.
7) Take Advantage of Discounts
This is something that many people forget about. Ask about discounts and take advantage of them. Not every company has the same discount, but here are some that we’ve found*:
- Antitheft Devices
- Bundle Discounts
- Student Discounts (College Students Away from Home, Good Grades, Honor Society Affiliation, Greek Life Affiliation, etc.)
- Multiple Cars
- 25 years old and Accident Free
- Accident free for 3 years
- Long-Time Customer
- Good Credit
- Defensive Driving Course
*Remember this is not a comprehensive list and every insurance company is different, please contact an agent today to see what discounts you may qualify for.
Insurance Information Institute