Car insurance costs vary across the country – mostly based on the state you live in and other factors; but even within a state, rates can fluctuate. So, where should you start in your hunt for lower auto insurance costs? Let’s take a quick look at five areas where you can make adjustments and potentially put thousands back in your wallet over your lifetime.
Do Your Research
Some people get their car insurance quotes just once, but it’s best to compare as many car insurance rates as possible before you buy a policy. When you get rates from more than one insurer, you can compare auto insurance costs and coverage to know how much you could potentially save. The cost of your car insurance will be higher if you fail to research this issue properly.
Adjust Your Deductible
Review your existing coverage—especially your deductible amount, as this is the amount you pay out-of-pocket when you file a claim. Check whether you can raise your deductible. You may not have adjusted your deductible in a while, so you may find that a higher deductible is more appropriate, which will lower your premium.
Bundle Policies
Insurance companies often offer bundle discounts for people who insure multiple policies with them. For example, the owner of a motorcycle who also owns a house can buy both policies from the same insurance provider and save money on insurance. Grouping policies together simplify your insurance plan as it is all in one place.
Check for Discounts
Some of the most common auto insurance industry discounts include multi-car, new car, and vehicle safety discounts. For instance, with a multi-car discount, you could receive between 8% and 25% savings for insuring more than one vehicle with the same insurer. If your car has new safety features such as anti-lock brakes and airbags, you might qualify for a discount of 10% to 15%.
Sign up For Usage-Based Insurance
Usage-based car insurance programs—which use sensors that plug into your car’s diagnostic port and track your driving behavior—have the potential to save you money. Insurers can thus surmise if you tend to speed, slam on the brakes or drive more than a specified number of miles per day. Usage-based auto insurance can help you save on your premiums if you are a cautious driver who drives at non-peak hours and rarely gets speeding tickets.
