Slash Your Car Insurance Bill: Top 12 Secrets Revealed!
Understanding Car Insurance Costs and How to Reduce Them
Car insurance is one of those necessary expenses for car owners, but that doesn’t mean you have to break the bank to get the coverage you need.
The Average Cost of Car Insurance
The amount you pay for car insurance can depend on many factors like the type of coverage you have. Full coverage typically costs around $1,674 per year, while minimum coverage averages about $565 per year. Keep in mind that your rates may increase if you have speeding tickets, accidents, or DUIs on your record.
Keep Insurance Costs Down with Bundling
Bundle Your Insurance Plans: To lower your premiums, consider bundling multiple insurance policies with one carrier. This could be your home and auto insurance or any other combination. Discounts for bundling can range from 5% to 25%, but make sure to do the math to ensure it actually saves you money.
Drive Safely and Choose a “Boring” Car
Drive Safely: Maintaining a clean driving record is key. Speeding, accidents, and DUIs can increase your premiums significantly. Use a telematics device if your insurer offers discounts for safe driving habits. Just be mindful that poor driving data can lead to higher costs.
Switch to a “Safer” Car: Choose cars like the Honda CR-V or Chrysler Pacifica, which are often cheaper to insure. Minivans and small trucks usually have lower insurance rates compared to sports cars and large sedans.
Explore Unique Car Insurance Options
Consider Pay-Per-Mile Insurance: If you’re a low-mileage driver, pay-per-mile insurance could be a cost-saving choice. Base rates are combined with a per-mile fee which means if you drive less, you pay less.
Seek Out Weird Discounts: Don’t be afraid to ask for discounts! Sometimes insurance companies offer unique discounts for various affiliations or even for being married.
Improve Your Odds with Defensive Driving and Credit Management
Take a Defensive Driver Class: Completing a defensive driving course might get you a discount with some insurers. Check if the savings justify the cost of the course.
Work on Your Credit: In many states, a better credit score can lead to more affordable insurance rates. Watch your insurance price as your credit improves and shop around if the rates do not change.
Maximize Discounts and Reconsider Your Options
Install an Anti-Theft Device: Many insurers offer discounts for cars equipped with anti-theft devices. Verify with your insurer before installation to ensure the discount.
Look at Your Coverage and Deductible: Review your coverage and consider adjusting your comprehensive coverage or increasing your deductible. However, a higher deductible means more out-of-pocket expense in case of an accident.
Expunging Your Driving Record: Clean up your driving record if possible. This might involve legal costs but could save you money in the long run. In some cases, waiting until the bad marks on your record expire might be the better option.
Take Advantage of Multi-Car Discounts: Insuring multiple cars under one policy is typically cheaper. In some states, you can combine coverage limits for even more protection.
Factor Insurance Costs into Your Next Move: Moving to regions with lower insurance rates, like the suburbs or rural areas, could potentially lower your rates.
The Bottom Line
Auto insurance can be more affordable with some research and proactive steps. By exploring discounts, managing your policy details, and maintaining a good driving record, you can find ways to reduce your car insurance costs. Always compare quotes and negotiate with your insurance provider to secure the best rates available.
