Ways to Lower Your Auto Insurance Costs

Have a good driving record.

One of the best ways to keep your auto insurance costs down is to have a good driving record. The following are other steps you can take to lower your insurance costs.

1. Shop Around for the Best Rates

Premiums can vary significantly from insurer to insurer, so it pays to shop around. Get at least three price quotes. You can shop online via quote comparison websites, get quotes directly from insurer websites, or work with either exclusive or independent insurance agents in your area.

You buy auto insurance to protect yourself financially and provide peace of mind. It also helps you meet the legal requirements of your jurisdiction. It’s important to pick a financially stable company. Check the financial health of insurance companies with rating companies such as AM Best and Standard & Poor’s.

Don’t shop by price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Please note that some insurers require you to obtain quotes and purchase coverage through their agents.

2. Compare Insurance Costs Before Buying a Vehicle

Before you buy a new or used vehicle, check into insurance costs. Auto insurance premiums are based in part on the vehicle’s price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety.

3. Consider Higher Deductibles

Deductibles are what you pay before your insurance coverage kicks in. By choosing higher deductibles, you can substantially lower your costs. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage costs by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, ensure you have enough money set aside to pay it if you have a claim.

4. Reduce Coverage on Older Vehicles

Consider dropping collision and/or comprehensive coverage on older vehicles. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost-effective. Auto dealer appraisers can tell you the market value of your vehicle.

There are also numerous self-service sources to determine your vehicle’s value, including Edmunds and Kelley Blue Book. Review your coverage at renewal time to make sure your insurance needs haven’t changed.

5. Benefits of Bundling Insurance Policies

Bundling your auto insurance with either your home or renters insurance from the same carrier is one of the most common discounts. This can generate savings on both policies. Another common discount is insuring more than one vehicle on the same policy.

There are many other ways to reduce your auto insurance costs, including signing up for a usage-based telematics or a pay-per-mile program. However, it still makes sense to shop around! You may save money by buying policies from different insurance companies rather than taking a multipolicy discount.

6. Maintain a Good Credit Record

Establishing a solid credit history can reduce your insurance costs. Most insurers use credit-based scores (except in four states where it is prohibited) to rate the cost of coverage. Actuarial data shows that how one manages their finances is a predictor of risk. Those with higher insurance scores file fewer claims and vice versa.

To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible. Check your credit report regularly and have any errors corrected promptly to keep your record accurate.

7. Take Advantage of Low Mileage Discounts

Some companies offer discounts to motorists who drive a lower-than-average number of miles per year (typically 7,500 miles or less). Low mileage discounts can also apply to drivers who carpool to work.

8. Ask About Group Insurance Options

Some companies offer reductions to drivers who get insurance through a group plan from their employers, professional, business, and alumni groups, or other associations. Ask your employer and inquire with groups or clubs you are a member of to see if these types of auto insurance discounts are available.

9. Seek Out Other Discounts

Companies often provide discounts to policyholders who have not had any accidents or moving violations for at least three years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a driver's education course, or is away at college without a car, you may also qualify for a lower rate.

When you comparison shop, inquire about a wide array of common discounts, including:

• Advanced Driver-Assistance Systems

• Antitheft Devices

• Bundling Auto with Another Policy from the Same Insurer, Such as Home, Renters, Life, or Pet Insurance

• College Student Living Away from Home

• Defensive Driving Courses

• Driver's Education Courses

• Good Credit Record

• Higher Deductibles

• Low Annual Mileage

• Long-Time Customer

• More than One Vehicle on the Same Policy

• No Accidents in Three Years

• No Moving Violations in Three Years

• Student Drivers with Good Grades

  
  

The discounts listed may not be available in all states or from all insurance companies. The key to savings is not the discounts, but the final premium you pay. A company that offers fewer discounts may still have a lower overall price.

Conclusion: Take Action to Save on Your Insurance

-----------------------------------------------------------------------------------------------

Take the time to compare options, ask questions, and review your policies regularly. This proactive approach will help you avoid costly surprises and keep your business protected against unforeseen risks.

If you have any questions about your auto or home insurance, please don't hesitate to contact us.

Get protected by visiting https://www.mfurmaninsurance.com/contact or calling us to receive a free quote.

Disclaimer  

This blog post is made available by the MFIA for educational purposes only and to give you general information and a general understanding of the current insurance market, not to provide specific insurance advice. For personalized insurance advice, please don't hesitate to contact us to receive a complimentary quote.