Check the discounts you're eligible for. Car insurance is needed to protect you financially when you're behind the wheel. Whether you only have basic liability insurance or full auto coverage, it's important to make sure you get the best deal possible. Wondering how to reduce car insurance? Here are 15 strategies for saving on car insurance costs.
By the way, some companies may also offer a discount on car insurance if you keep other policies with the company, such as homeowners insurance. Allstate, for example, offers a 10% discount on car insurance and a 25% discount on home insurance if you combine them, so check if those discounts are available and applicable. It goes without saying, but in today's era of increasing distractions in the car, it's worth mentioning as much as possible. The more aware you are, the more accidents or traffic violations you can avoid events that increase your insurance rates.
Travelers offers discounts for safe drivers of between 10 and 23%, depending on your driving record. Some insurers will offer a discount if you buy a hybrid or alternative fuel vehicle. Farmers, for example, offer a 5% discount. GEICO, for example, offers a “potential savings” of 25% if you have an anti-theft system in your car.
However, there are many things you can do to reduce the sting. These 15 tips will help you drive in the right direction. Also remember to compare the best auto insurance companies to find the one that fits your coverage and budget needs. Take our 3-minute questionnaire and talk to an advisor today.
Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We've maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the actions they should take next. The average American spends about 2.6% of their annual income on auto insurance, which represents a significant bill for many households. However, with the rise of remote working, many drivers' habits have changed, and so may other factors, such as the cost of car parts and repairs, that could affect the cost of their auto insurance policy.
If you haven't compared rates or evaluated your coverage recently, you may be overpaying for car insurance. While reducing your monthly payment may seem complicated, Bankrate can help by offering you some simple tips to reduce your premium. While significant credit increases can take time, paying off debts, setting up a monthly budget to help control bills, and making timely payments can go a long way toward reducing insurance costs. Car insurance coverage includes a deductible or the amount that the insurance company deducts from your payment if you file a claim.
Over time, with the depreciated value of the car, your annual premium could be higher than what the auto insurance company would pay if your car had been liquidated for the full amount. When choosing car insurance, you can usually choose a deductible, which is the amount of money you would have to pay before the insurance pays the bill in the event of an accident, theft, or other type of damage to the vehicle. Because these factors, as well as others, such as the make and model of the car you drive, influence the underwriting process and the final rate you pay, the best provider of cheap car insurance will be different for everyone. If you use your vehicle to commute three hours to work every day, you'll generally pay more in insurance premiums than someone who only drives one mile a day.
Quote comparisons can be very useful in determining which auto insurance company offers the best rate for the coverage you want and could make it clear that you're paying too much for coverage...