With inflation on the rise, driving rates returning to pre-pandemic levels, and an increasing number of collisions, insurance experts are predicting increases to car insurance policies this year.
Here are a few tips to help avoid or limit an auto insurance increase:
It pays to shop around. Prices vary from company to company, so you can actually save money by getting at least three quotes from competing insurers. Make sure you’re comparing identical coverages when reviewing different quotes. And be sure you’re dealing with licensed agents and companies.
Increase your deductible. Deductibles are what you pay before your insurance policy kicks in. By requesting a higher deductible, you can lower your costs substantially. According to the Insurance Information Institute, “…increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent.”
Ask your agent or company if you’re eligible for any discounts. Here are some examples of discounts that you may be eligible for:- If you agree to an Electronic Funds Transfer
- If you’re renewing your policy and did not have a loss or conviction during the last policy period
- If you’re considered a mature driver (normally age 55, but ages for eligibility can vary by company)
Take advantage of low mileage discounts. Some companies offer discounts to motorists who drive a lower than average number of miles per year. If your work or commute situation changed recently, this discount may apply.
Evaluate coverage carefully for older vehicles. If you have an older vehicle and it’s not financed, you may not financially benefit from comprehensive and collision coverages. Experts suggest that if your car is worth less than 10 times the premium, purchasing this coverage may not be cost effective.
Maintain a good driving record. Avoiding accidents and speeding tickets is the most important part of averting an auto insurance premium increase. Motorists with tickets and crashes on their records are higher risks for insurance companies, and their premiums reflect that.
A good credit score can help too. Most insurers use the information in your credit report to calculate a credit based insurance score. They do this because studies show a correlation between this score and the likelihood of filing a claim. Check your credit record on a regular basis and have any errors corrected quickly so that your record remains accurate.
While some hikes to car insurance are unavoidable, there are still plenty of ways to save. Follow these simple tips to help avoid or limit an auto insurance increase. And be sure to share these money-saving tips with family and friends! |
|
