If you have a car, auto insurance is a necessary and valuable expense. You’re likely required by law to carry at least some coverage and though you can’t cut this cost, you can find ways to save on your auto insurance. We’ve outlined eight ways to lower your car insurance premium here.
As always, it’s a great idea to consult an independent insurance agent to see if you’re paying too much for your auto insurance. An independent agent can help you evaluate your coverage levels, identify relevant discounts and help you shop around quickly and easily by quoting you with a variety of carriers. With agents like ours, you’ll also receive unbiased insurance advice to make the most of your coverage.
Ways to Save on Auto Insurance
Bundling is a great way to save on your auto insurance. You probably have more than just your car to insure – your home or apartment likely needs coverage as well. Getting two or more of your policies from the same insurance company is called bundling, and it usually means savings on each of your policies.
The benefits of bundling go beyond just savings. By bundling, all of your policies will be in the same place and your insurance agent will have a better understanding of your situation and assets, which can help your agent find you better coverage.
2. Improve your credit
Better credit won’t just get you a better rate on a car loan, it can also help you save on your auto insurance premium in some states. Many states take your credit score into account when pricing out your risk, so the better your credit, the better chance you have of a lower premium.
3. Take a defensive driver course
Insurance companies price policies on risk – if you’re a better driver, you’re less risky to insure. A defensive driving course can help you sharpen your driving skills and help you save on your car insurance. Before you sign up, be aware that this discount is not available in all states, but it is in most. Sometimes only a senior can take a defensive driving course, like in Pennsylvania.
Be sure to check on the requirements and restrictions in your state before enrolling. You may also want to check with your insurance agent to make sure insurance companies in your state offer this discount.
4. Participate in a user-based insurance program
User-Based Insurance Programs use tracking devices to learn more about how you drive and determine your rates using your driving data. These programs have grown in popularity and if you’re a safe driver who avoids driving during high-risk times (like rush hour or at night), it can help you unlock additional savings on your auto insurance premium.
There are many carriers that offer such programs, like Progressive’s Snapshot, MetLife’s My Journey, Safeco’s RightTrack, Plymouth Rock’s YUBI (Your User Based Insurance) and more. Talk with your insurance agent to learn more about carriers that offer these programs in your state.
5. Drive safer
This one may seem obvious, but it bears repeating! The fewer tickets and accidents you have, the cheaper your auto insurance premium will be. Safety can lead to savings on your auto insurance, so consider this one a great motivator to avoid speeding, lock your phone away and turn down the radio!
6. Buy a less expensive car
Unfortunately, your dream Range Rover isn’t just expensive on its own – a pricey vehicle can make your auto insurance policy pricier as well. Because your auto policy’s comprehensive and collision coverage are based on the cost to repair or replace your car, less expensive cars cost less to insure.
If you’re in the market for a new vehicle, it’s worth considering its effect on your auto insurance. Your insurance agent can help give you an idea of the types of vehicles that can help you save on your insurance premium.
7. Purchase an older car and liability only insurance
The downside of going this route to save is that your car would not covered on your insurance policy. By skipping on comprehensive and collision coverage and carrying liability only insurance, you can save on your car insurance premium, since you have less coverage to pay for. The catch is making sure you have enough money saved to replace or repair your car if needed, since your insurance won’t step in to handle those costs if you choose liability only.
8. Avoid having a lapse in insurance
Customers with continuous coverage get a better rate than someone with a lapse, even if it’s only for a few days. You can save on your insurance by making sure you handle your policy renewals in a timely manner and by ensuring you make your policy payments on time to avoid an accidental lapse in coverage.
A final way to save is by comparing auto insurance quotes with an independent insurance agent. Give us a call today at at (844) 819-2221!
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