Car insurance premiums have skyrocketed, yet there are ways to cut costs. From installing a black box in your car to switching over to electronic bills, these strategies may help bring down premium costs.
Increase your deductible to reduce rates – just be sure that you have enough savings saved up in case of an accident and always shop around!
1. Drive Safely
One effective strategy to lower your insurance premiums is increasing policy deductibles, but you should only do this if you have enough money saved up in savings to cover it. Consult with your agent before making such changes as cutting coverage levels; keep in mind that life changes such as moves, job shifts or low credit may alter the rates that apply.
Driving safely is key to saving money on car insurance. Adopting safer habits not only saves money on car repairs and prevents accidents, but they can also help insurers avoid claims which saves everyone money in the form of reduced premiums and claims costs.
2. Get a Telematics Device
Telematics devices constantly collect data on how your vehicle is driven, providing valuable insights that could reduce premiums if used responsibly. Before signing on with any usage-based insurance program, however, all aspects of this data use and sharing must be clearly understood before agreeing to participate.
Progressive and State Farm offer programs that can lower your rates using plug-in devices or mobile apps, recognizing good driving behaviors while helping new drivers build up an excellent record with their insurers. Fleets can use telematics devices to keep an eye on vehicles, driver logs, and compliance reports.
3. Get a Good Student Discount
Good students tend to be considered lower-risk drivers, so they often qualify for discounts from insurance providers. State Farm offers a 25 percent discount until age 25 for full-time high school and college students with a B average or better until age 25, while GEICO discounts certain coverages by 15 percent for qualified students.
Insurance providers also provide similar discounts, although the extent of savings will differ depending on your insurer. To be eligible, typically meet age requirements as well as provide documents like report cards, transcripts, dean’s lists, or honor roll recognition as proof; or score among the top 20% in standardized tests.
4. Get a Multi-Car Discount
Car insurance providers typically offer multi-car discounts that can save you money on premiums. The amount you save depends on both your insurer and how you own and register the vehicles insured under one policy – typically, all vehicles must belong to members of one household to be eligible for these discounts.
An insurance multi-car discount makes managing your coverage simpler by consolidating all bills and renewal dates into one bill and a renewal date to manage. Be sure to compare car insurance quotes for multiple cars when shopping around as prices can differ between providers allowing you to select the policy best suited for your budget and needs.
5. Bundle Your Policies
Bundling insurance policies is an efficient way to save on costs. When purchasing multiple policies from one provider – like auto and home – at once, discounts of around 25% should apply, according to InsuranceQuotes.
Bundling other policies such as life and recreational vehicle coverage with your auto or home policy may help you save money; however, any savings won’t always be significant so it is wise to compare individual quotes alongside bundle coverage to ensure you find the most competitive rates for your unique situation.
6. Take a Driver Improvement Course
Many insurance providers provide courses designed to teach drivers more skill, confidence, and safety on the road. Completing a defensive driving course could qualify you for up to 10% discounts in liability and collision rates in New York state.
Discounts typically last three years, making the investment worth your while to prevent rate increases due to tickets or accidents and to show that safety is taken seriously as a driver. Other insurers also provide driver behavior discounts based on driving habits and annual mileage, making these worth pursuing even without attending defensive driving course discounts.
7. Get a Good Credit Score
If your credit score falls short of expectations, increasing it could save money on car and homeowners insurance policies. Although improving it could take some time, taking steps like paying down debt quickly and on schedule can make an impactful difference in your score.
Though many may be unaware, your credit history can have a major effect on your insurance rates. With only four states banning insurers from considering your credit-based insurance score when setting premiums, this factor often plays into premium calculations; drivers with poor credit pay on average 42% more for coverage.
8. Get a Multi-Policy Discount
Insurance companies strive to make you stay with them, so they offer discounts as an incentive to do so. A popular offer is the bundling discount which applies when insuring both home and auto with one company.
Bundling offers several other advantages, including simpler billing, easier online access, and savings that add up. People often don’t take advantage of discounts offered, but it may be worthwhile taking a closer look to see how much money could be saved. Insurance coverage, terms, definitions, and exclusions differ by state and product – please review your policy contract, declaration pages, and endorsements for more information.
9. Get a Good Driver Discount
Many providers offer a good driver discount, giving drivers lower rates simply for remaining accident-free for a certain period (typically three to five years). Some providers even provide rewards based on avoiding major moving violations like speeding or running red lights for that timeframe.
Participating in an accident prevention course or tracking telematics program can earn discounts, while most simply depend on staying accident-free or avoiding moving violations. Avoid distractions behind the wheel (changing songs, texting friends, and fiddling with radio settings) to keep these discounts alive.
