Car insurance is necessary to protect you financially when behind the wheel.
Whether you just have basic liability insurance or you have fully automated coverage, it's important to make sure you're getting the best possible deal. Wondering how to reduce car insurance? Here are 15 strategies to save on car insurance costs.
How Much Does Car Insurance Cost?
The cost of car insurance is different for each driver, depending on the state in which they live, the choice of their insurance company and the type of coverage they have. But when trying to save money on car insurance, it helps to know what the average driver pays.
On average, the typical person spent $1,190 on car insurance in 2018
Car insurance premiums increased by 30% between 2014 and 2018, although the number of insured cars increased by only 7%
How to Save on Car Insurance Costs
There are a number of strategies you can use to save car insurance. Once you know how much car insurance is for you, you can work out some or all of these strategies.
1.Pay Attention on the Road
In other words, be a safe driver. Needless to say, but the growing confusion in cars in today’s era, it mentions as much as possible. The more aware you are, the more accidents or ongoing violations you will be able to avoid - events that increase your insurance rate. Travelers offer safe driver discounts of between 10% and 23% depending on your driving record.
For those who don't know, points are usually assessed for a driver's ongoing violation and more points can lead to higher insurance premiums.
2.Take a Defensive Driving Course
Sometimes insurance companies will offer discounts for those who complete an approved protective driving course. Drivers may also be able to reduce the number of points on their license by taking a protective driving, accident prevention or other course.
Be sure to ask your agent / insurance company about this discount before you sign up for a class. Above all, it is important that the effort is being spent and that the cost of the course saves a considerable amount of insurance. It is also important that drivers sign up for a recognized course. Each state has its own rules about accredited protective driving courses, and GEICO allows you to check what is state-by-state on its website.
3.Take Advantage of Multi-Car Discounts
If you get a quote from an auto insurance company to insure a car, you can end up with a higher price per car than if you ask that company to insure more than one driver or vehicle. Insurance companies will offer a bulk rate amount because they want your business. In some cases they are willing to give you a deal if that means you will bring more of it.
Ask your insurance agent to see if you are eligible. Generally speaking, multiple drivers must live in the same residence and be related by blood or marriage. Two unrelated people may also be able to get a discount; However, they usually have to jointly own the car.
If one of your drivers is a teenager, you can expect to pay more to insure them. However, if your child's grades are on average B or higher or if they rank in the top 20% of the class, you may be able to get a good student discount on coverage, which usually lasts until your child is 25 years old. These discounts can range from 1% to 39%, so be sure to show your insurance agent proof that your teen is a good student.
Incidentally, some companies may even offer an auto insurance discount if you maintain other policies with the firm, such as homeowners insurance. Allstate, for example, offers 10% car insurance discounts and 25% homeowners insurance discounts when you bundle them together, so check to see if such discounts are available and applicable.
4.Shop Around for Better Car Insurance Rates
If your policy continues to renew and the annual premium increases significantly, consider shopping nearby and getting quotes from competing companies. Also, every year or two it is probably understandable to get quotes from other companies, if there is a lower rate.
Remember, cheap means not always good, and going with a low priced company is not always a wise decision. Because the indebtedness of the insurer should also be considered. After all, what good is a policy if the company does not have the means to pay the insurance claim?
To run a check on a particular insurer, consider examining a site that rates the financial strength of insurance companies. The financial strength of your insurance company is important, but so is what your contract covers, so make sure you understand this. Insure.com's site is based on data compiled by Standard & Poor's and its insurance company ratings.
5.Use Mass Transit
When you sign up for insurance, the company will usually start with a questionnaire. This may include the number of insured automobiles you drive each year.
If you use your vehicle for a three-hour commute to work each day, you will usually pay more in insurance premiums than a person who drives only one mile a day. If possible, try to use public transit to rack less miles, remembering that you usually need to significantly reduce your mileage before you can offer a discount. Ask your insurance company about the different mileage thresholds of the company so that your efforts are not wasted.
Also, check with your provider to see how many miles they have you currently driving, as most can give you an improved insurance quote.