According to the National Association of Insurance Commissioners, individuals typically spent $1,204 on car insurance in 2019. There are several ways to save and make sure you’re getting the best rates for insurance for your car. By comparing prices and shopping around, you can get great coverage at a great rate.
Take a look at the following five steps, and you will have some powerful strategies for comparing and saving on car insurance.
1. Explore Bulk Discounts
Are you the only driver in your house? If you have several drivers and/or multiple vehicles in your household, you could take advantage of multi-car discounts. Many insurance companies are keen to offer discounts to families with multiple cars on the same policy.
It helps insurers make money by offering you a bulk rate, but typically, multiple drivers in a household need to be related by marriage or blood. There are some exceptions, so talk with your insurance agent to see if you qualify.
While this may seem kind of old-fashioned, it’s a simple issue of math. Your agent can boost their business by helping you with a multiple-car policy. While they get more business from a single transaction—you and your family benefit from the discount. It’s a win-win situation for everyone involved.
2. Link Your Different Types of Insurance Policies
In principle, this strategy is similar to the bulk discount. If you have insurance policies with multiple companies for your home, car, or umbrella, you could be missing out on some hefty discounts. For example, if you have homeowners insurance, check with your auto insurer to see if you could qualify for a bundling discount.
Some companies advertise these policies, while others offer them on a per-case basis. Speaking directly with an insurance agent can help you determine what specific options are available to you.
3. Emphasize Your Safe Driving Record
Driving safely has its rewards. In addition to staying safe, healthy, and driving, your safe driving record often entitles you to lower auto insurance rates.
If you have a lot of moving violations, this can make your car insurance premiums increase substantially. Points are usually given to drivers for moving violations, and as you can imagine, the more points, the higher insurance costs.
Driving safely includes not getting traffic violations and maintaining a driving record with no at-fault accidents. This is not only a way to stay safe on the road but also a way to keep your insurance rates in check. Check with your insurance agent and compare rates to find the insurer that offers safe driver records.
4. Downsize Your Car and Your Mileage
If taking care of the environment and prices at the gas pump hasn’t caused you to find a more fuel-efficient car, perhaps the savings on auto insurance will inspire you to downsize.
If you’re considering making a vehicle purchase, keep your insurance coverage in mind before signing on the dotted line. Some insurance companies offer discounts on hybrids or alternative fuel vehicles.
If you’re downsizing your car for a more environmental-friendly version, take a look at how much you’re driving. This is a powerful way to help your health and help the health of the planet. Getting out of your car can help you make more friends, enjoy nature, and stay in good physical health. Consider where you could take mass transit, ride a bike, or go for a walk.
The less you drive, the lower the mileage you’re putting on your car. The lower your mileage, the more likely you may be eligible for low-mileage discounts. If you drive less than the average driver, you may qualify for better rates.
5. Talk With Your Agent
While shopping for quotes online is convenient, it can be more beneficial to speak with a live human being.
An insurance agent may be able to assist you by filling you in on any special discounts you may not otherwise be aware of. For instance, you may qualify for a special discount if you are an employee of a particular company or an active member of the military.
Some insurers offer discounts to students with good grades. In the United States, many insurers offer discounts for full-time students ages 16 to 25 years old. Most insurers say students qualify by maintaining a B average, as good grades indicate higher reliability.
Many discounts may be available to you, and an insurance agent is motivated to make their offer attractive to you. You may be able to cut your bill with offers that relate to payment.
These may include discounts for:
- Paying the annual amount up front
- Paying a six-month premium
- E-bills
- Automatic withdrawals
- Membership in specific groups
- Living in a rural area
Bonus: Shop for Savings
While comparing the best rates on auto insurance, be sure to shop around.
If you’re looking online, be sure to check with websites that offer multiple quotes. You may discover that different sites have different pricing structures.
Consider looking offline at insurers in your community. You may find that new agents and smaller insurance companies are eager to win your business. Look around your neighborhood, talk to local agents, and compare prices.
In addition, talk to friends and family to get referrals to a reputable insurance agent. Many agents are happy to offer discounts for multiple vehicles and good-student discounts and can make suggestions for getting the best rates.
If you’ve had a big change in your life recently, it’s a good idea to shop for savings on insurance. A major life event such as getting married, moving, or graduating can potentially qualify you for better insurance pricing.
Save Money and Boost Peace of Mind
Warren Allen specializes in personal injury law, representing people like yourself and helping them get sound advice to protect themselves and their families.
If you have questions about your insurance coverage, need legal advice, or want to discuss representation for a court issue involving a personal injury accident, we are here to help. We are here to offer you our expertise, help you save money, and protect you and your family.
Add Comment