Auto insurance can be ridiculously expensive if we let it! As we discussed yesterday, one person might be paying $585 a year, while another pays over $2,000! So what is a driver to do if he or she wants to chip away at these exorbitant prices?
Strategies For Reducing Auto Insurance Premiums
- You could shop around. Now is as good a time as any to take a look at what another auto insurance provider might offer you. Every company looks at different factors to come up with your total premium. (For your convenience, you can search free quotes right from our site!)
- You could reduce your coverage. This could be dangerous, especially if you are reducing liability coverage, but you may be buying more coverage than you really need. For instance, there is no need to have high collision coverage for an old vehicle that is already paid off and isn’t worth repairing if it gets into an accident.
- You could raise your deductible. This is a good option if you have $1,000 or $2,000 in the bank. Raising the amount you’ll pay in the event of an accident will lower your premium, guaranteed.
- You could bundle your insurance needs. Most insurance providers will offer you a handsome discount if you get your homeowner’s insurance, life insurance, and car insurance all from the same place.
- Drive safely! Avoiding accidents and tickets is the best way to keep your rates as low as possible.
Choose Your Car Wisely
The type of car you’re insuring very much factors into your rate as well. When buying a car, consider these factors:
- Insurance loss records: Insurers want to know how much money they’ll lose if your car is totaled in an accident. Check The Highway Data Loss Institute to see how your car stacks up!
- Price: More expensive cars with more expensive parts will cost more to insure.
- Performance: Choose a vehicle with less horsepower and a smaller engine if you want to pay less.
- Safety Features: You pay less on a vehicle with more safety features installed and a better overall safety rating.
There are other ways to save as well.
Hybrids can save you money in some cases. New cars cost less to insure if they are endowed with better safety features than your old clunker. However, you may also save by insuring a used car because the gap insurance will be less, since you are not experiencing the same rate of depreciation as a new car. Don’t forget to shop around for the best auto insurance rates!