How To Save Money On Insurance For Your Car
Several factors determine your car insurance rates. Some elements are out of your control such as your gender and age and others are in your control like your credit history and driving record. Other factors like your job and residential address also affect your rates, but may not be worth changing to find cheaper auto insurance.
However, there are auto insurance costs that you can control. It can be easier for you to lower insurance rates if you understand your auto policy. You can use the following tips to save money on auto insurance.
Bundle Your Insurance
You will save on your car insurance rates by bundling car insurance with another policy from the same carrier. Insurers will offer prospective clients discounted rates if they:
- Purchase more policies from the same insurer
- Pay for more than one vehicle
- Protect more than one driver
Purchase More Policies From The Same Insurer
You can choose to purchase your car and renters insurance from the same insurer. This move can save you up to 20% on each policy. Be sure to ask about a multi-policy discount.
Pay For More Than One Vehicle
If you are in a situation where you own multiple vehicles, you may want to purchase coverage from the same company. This action typically saves you up to 25% when bundled.
Protect More Than One Driver
You can have everyone who is licensed to drive in your family covered by one insurer. It is cheaper than having separate policies for each driver. But, if there is one driver with a tarnished driving record, a high-risk insurer is an option for that person.
Remember, everyone’s situation is different so your rates may vary depending on the insurer. As stated in our articles, we recommend you shop around to find a policy that addresses all of your concerns and protects you and your family.
Auto insurance companies offer different rates for the same coverage. It is possible to get the same policy from a different insurer for hundreds of dollars more annually. You will not find a single insurer with the best rates to fit everyone’s needs. Therefore, it is advisable to shop around and compare prices from at least three insurers. You might consider consulting an independent agent to get quotes from different insurers. Or, get online and check out prices from each insurer. The more research done here, the more well versed you are in the topic and able to determine if your policy is providing appropriate coverage for the cost.
Increase Your Deductible
You will save your money by increasing the deductible on collision and comprehensive policies. A deductible is an amount your auto insurer will not cover when paying to repair your car. For instance, if repairing your car would cost $2,000, and the deductible is $500, your insurer will pay $1,500. You would have to pay $500 out of pocket. Raising your deductible by hundreds of dollars can lower the premiums anywhere from 15% to 40%.
Say you are paying $500 annually for collision and comprehensive policy with a deductible set at $500. Raising that deductible to $1,000 could save you $200 yearly. If you have a clean driving history, you might consider increasing your deductible on collision. It is important to note that this method may save you money in the short term. Should an accident occur and you not have enough of a financial cushion to cover the costs of repair, you may find yourself in a financial bind. Therefore, take a look at your risk tolerance. This could be used if it would not adversely affect your situation. Remember, the more you are willing to pay out of pocket, the lower your premiums.
Low Mileage Discount
The number of miles your car covers per year is a significant component of the rates you pay. Your auto insurer considers 12,000 miles the average distance your car should cover yearly.
If you drive less than the average mileage each year, you should let your insurer know. You could qualify for usage-based discounts.
Reducing your driving could save you 5 to 10 percent on your premiums.
Choose Which Vehicle to Drive
The type of vehicle you are driving influence your rates. It depends on the average cost of claims for that make and model. For instance, the rates you would pay to insure a four-wheel drive vehicle are not the same as a two-wheel drive. In case of an accident, four-wheel drive vehicles would cost more to repair because they are typically more complex. For more complex SUVs, they require more money to repair.
Your insurer will also consider how often that type of vehicle is stolen. By buying a car that is less likely to be taken, you can reduce your premiums annually. Refer to our article 14 factors that affect your car insurance rate for a deeper understanding of how to lower your rates.
Consider Group Insurance
Most people are aware that you can get health insurance through your employer. However, some people do not know they can save on car insurance from being members of certain organizations. Group insurance plans are available at lower rates. It is cheaper for insurance companies to provide coverage for a large group than individuals.
Group insurance is available for:
- Professional associations
- Members of a particular society
- Company employees
- Auto insurance for groups can offer more discounts on:
- Car rentals
- Parking in exclusive garages
The primary disadvantage of this method is that you do not choose your insurer and you lose your policy when employment is terminated. Contact your human resources department to see if this is an option for you.
To save money on auto insurance rates, consider your personal needs and search for the best deal. Think about bundling, deductibles, available discounts, and the type of car you drive prior to obtaining a policy to ensure you are taking advantage of all options available to you. For help in obtaining the right, low cost policy for you, visit our Scottsdale, Oklahoma, or Texas location today. We also have a free, convenient online quote to get you started. We look forward to helping you navigate the insurance world.