For many smart consumers, saving money is almost an obsession. They respect the value of money and time. And it’s often those with good driving habits and mindfulness who are best able to save money on their auto insurance premiums.
Rates have risen over the last 5 years and there’s no reason to believe the trend will change because inflation could become a factor soon.
If your approach is to reduce your coverage to lower your rates, you may end up with an increase in risk, Accidents can happen and you don’t want to face losing the value of your vehicle,
Best Ways to Reduce your Auto Insurance Rates
- Shop around. Consult with a broker who can take your specific details and offer more alternatives. Banks and insurance companies want to sell only their products and are not under enough financial/competitive pressure to offer the lowest prices. Ask a broker about discounts such as a “claim free” discount.
- Drive a different car. Your car might be expensive or difficult to repair, making it more costly for the insurer to replace or repair.
- Drive an older car. Driving an older car, means you can drop collision coverage. It’s cheaper for the insurance company to replace or repair too.
- Usage-based policies. If you don’t mind having a tracking type device attached to your car, your good and infrequent driving makes you less of a claim risk. Ask about usage based auto insurance.
- Drive Conscientiously. Over time, your good driving record makes you a lower risk, hence lower rates.
- Choose higher deductibles. Push your deductible up to $1000 if you’re very sure you won’t be involved in collisions or claims.
- Install an anti-theft device. There are a variety of devices you can install to prevent ignition, disable the steering wheel, warn of intrusion and track where the vehicle is. Anyone of them can deter thieves.
- Combine auto, life and home insurance coverage. This is where a broker can really shine in giving you the best of all worlds. If you move your insurance coverage, they can help you save money on each individual type of policy as well, so the potential savings are worth a phone call.
- Exclude your teen drivers from your policy. There may be extra steps to get your kids off of your policy legally, but it’s one good insurance reduction technique to talk to your insurance broker about.
- Decline coverage you don’t need such as roadside assistance, car rental, courtesy cars, etc. Ask your broker about which insurance providers will give you a lower rate if you drop the frills you don’t really need.
Our brokers are ready to help you save money on your next auto insurance policy. Shop around by using a broker who has multiple insurance providers ready to quote on your policy.
Also check out how insurance companies determine auto rates.