How to save on car insurance: 6 ways to lower your rate
by Admin
Posted on 24-11-2022 10:36 PM
While many people first consider sticker price and the price of gas when it comes to the cost of owning a car , car
insurance
rates matter too. And depending on your circumstances, it might be a larger cost than you were expecting, especially as rates continue to increase.
While there is a long list of car insurance providers you can choose from to save money on car insurance, you can also do other things to help make your car insurance more affordable.
Maybe you're working from home permanently and need less coverage . Or perhaps you're returning to the office and need more coverage now. Whatever your situation may be, it's always a good idea to shop around to ensure you're getting the best rates, as other carriers might offer bigger discounts or lower premiums in general. If you aren't sure where to start, check out cnet's car insurance roundups, where you can see our picks for best overall car insurance , the cheapest car insurance , the best policies for teens and young drivers and the best options for military and veterans.
Many households with more than one vehicle maintain separate insurance policies for each, but they may be missing out on a multi-car discount of up to 25% on most coverages. Move all your vehicles to geico and see how much more you could save. Depending on the state you live in, you could be eligible for a multi- policy /multi-line discount if you buy more than one type of coverage through the same insurer. Pairing auto and homeowners insurance is the most common scenario, but pairing auto insurance with renters , condo , or mobile home insurance could yield similar results. Get a fast, free quote on geico.
There are a number of strategies you may use to save on car insurance. Once you know how much is car insurance for you, you can put some or all of these tactics t work.
Compare auto insurance rates
Many insurers will give you a discount if you purchase two or more types of insurance from them—such as
homeowners
and auto—or have more than one vehicle insured. Some companies offer a price break to longtime customers.
There are no guarantees so do your homework and compare costs for a multi-policy discount from a single insurer with buying your insurance separately from different companies.
It doesn't seem quite fair. In most states, insurers can use your credit history as a rating factor to set insurance premiums. Insurance companies often refer to this as an insurance score because the rating mechanism may include other factors. However, your credit history might be costing you money on auto insurance—or it might be saving you money. Insurance actuarial studies discovered statistical data that suggests a policyholder with poor credit is more likely to place an insurance claim compared to a policyholder with good credit. Based on this, most states allow the practice of using credit as a rating factor, although some restrict using credit as a rating factor to only auto policies.
Did you know industry recommendations are to shop for auto insurance every six months? in most states, that is the length of a policy, and shopping around before automatically re-upping coverage can save you money. Car insurance companies change rates all the time. Even day-to-day, which is why you usually can’t lock in a policy price for more than a week or two before activating the policy. This is driven by changes in their claims, weather patterns, and market rules. The changes are usually small, but over time can add up. There are also other reasons to compare insurance quotes often.
If you’ve ever owned a car, you know how expensive auto insurance can be. According to aaa , a medium sedan costs an average of $1,106 per year to insure – about 15% of the total cost of owning the car. Drivers pay more each year for insurance than they do for maintenance, tires, or even gas. There are a lot of different factors that affect your auto insurance rates. Some of these, like your age and gender, aren’t under your control. Others, like your job or where you live, aren’t really practical to change. It’s not worth switching jobs or moving to another state just to insure your car more cheaply.
How you can lower your car insurance cost
Switching from a $500 deductible to a $1,000 deductible can save as much as 20% on your insurance premium. But remember that a higher deductible means you might have to pay more out-of-pocket if you have a claim. When deciding what deductible is right for you , think about how much you can afford to pay if your car or home are damaged. If the cost of repairs is about the same as your deductible, you might not want to file a claim. Auto and home insurance companies can raise your future premium after you make certain claims. That is, a small claim could end up raising your premium.