7 Ways to Save on Your Car Insurance Quotes
If there is one thing we all hate, it is paying the high price of car insurance. Car insurance quotes can hit you with sticker shock, especially when you upgrade to a newer vehicle or have mishaps during the year.
According to the Insurance Information Institute, the average cost of auto insurance in the United States is $1,056.55 per year. Louisiana residents pay the most, with an average yearly premium of $1,545.82. Michigan is second highest at $1,469.73.
When you compare car insurance quotes, there are several factors that come into play. This includes your driving record, coverage limits, credit history, and state requirements. There are some states that require drivers to carry $100,000 in liability coverage, and other states only require $20,000 to $30,000 of liability coverage.
The final thing that affects your car insurance premiums is your selection of an insurance carrier. Let's take a look at some ways you can save on your car insurance costs.
1. Ask About Discounts
Cheap car insurance quotes are sometimes right under your nose, and all you have to do is ask. You may be able to receive anywhere from a 2% to 10% discount on your car insurance if you belong to specific groups or work in certain professions.
This includes professional organizations, alumni organizations, honor societies, sororities, and fraternities. You may also receive discounts if you work as a nurse, teacher, first responder, are a military member, or federal employee.
Some insurance companies give a discount for maintaining a clean driving record. They may offer discounts for older drivers, those graduating from college, or being a homeowner. While these things don’t make you a better driver, they imply that you are a responsible person.
You may get a better yearly rate if you can afford to pay the premium in full for the year rather than making monthly payments. There may also be paperless billing discounts.
If you have safety devices on your automobile it may reduce your insurance. This includes airbags, anti-lock brakes, vehicle recovery systems, and anti-theft devices.
Each insurance company offers different discounts, so you need to compare several company discounts and bottom-line costs. An excellent way to do this is to get car insurance quotes online using a service that can provide you with a comparison of several insurance carrier options.
2. Review Your Coverage
Deciding how much insurance you need to purchase requires combining your personal choices with what your state requires. State requirements are minimums, and you may want to add to your policy to ensure you have sufficient coverage. If you are found at fault in an accident the insurance minimums may not cover all the costs of medical care and vehicle repairs.
At the same time, you do not want to pay for coverage you do not need. For instance, if you are driving a brand new vehicle that is under warranty and includes roadside service, there is no need to pay for roadside assistance on your insurance policy.
If you drive a vehicle that is more than ten years old, you may want to consider dropping collision or comprehensive coverage. This can lower your premium by about $1,500 per year.
Before crossing that coverage off, take a look at what the blue book price of your vehicle is in comparison to what the insurance coverage is costing. Then weigh those two items against your ability to replace the vehicle out-of-pocket if an accident were to render your car inoperable.
3. Increase Your Deductible
The higher your deductible for comprehensive coverage and collision coverage, the lower your premium. You will save about 56% on premiums if you increase your deductible from $50 to $1,000. If you go from $500 to $1,000 you will save about 25%.
Again, you want to weigh these savings against your ability to pay the deductibles out of pocket if an accident were to occur. If you have ample savings, this is a great cost savings. If you live paycheck to paycheck, the higher premiums help avoid a hefty out-of-pocket expenditure following an accident.
4. Insurance Bundling
The most common bundling package is your auto insurance with home or renters coverage. This will save you around 15% on your auto and as much as 35% on your home insurance every year. Other auto bundle options may include umbrella, life, or health insurance.
If you own multiple vehicles you should combine them all under the same policy for up to 25% in savings. When you obtain a multi-vehicle discount you are still able to customize the options for each car separately.
5. Tracking Driver Telematics
This is an option that is based on how you use your vehicle. If you are a low mileage driver this option may save you 30% to 50% on your premiums.
The way it works is a device or app tracks your driving. You receive discounts by being a safe driver, having low mileage, and not speeding.
Every driving misstep is likely going to cost you additional insurance. If you have one accident on your driving record, you will see a premium increase of about $600. Even a single speeding ticket may cost you an additional $300 per year in premiums.
Some insurance companies are more forgiving than others, so you may want to shop around for a better price if your insurance takes a leap.
A really costly blunder will be a charge of driving under the influence (DUI). Not only is it costly through the court system, but your insurance premiums will sky-rocket. If you obtain even one DUI charge you can anticipate a 74% increase in your insurance premiums, even if you previously had a clean record.
6. Insuring Teen Drivers
The best way to ensure your teen depends on their driving record. Usually, the least costly method is to have them on your policy. This can save you about 66% on insurance premiums.
If your teen has a driving record with tickets or accidents, your insurance costs will be higher. When this happens you need to compare the cost for insuring your teen on your policy versus placing them on their own separate policy.
7. Improve Your Credit Score
People who have good credit scores are viewed as being more financially responsible. Many insurance companies base their rates on a person’s credit history. With some companies, insurance can be as much as $950 more with poor credit and $700 more with fair credit.
Get Your Car Insurance Quotes Here
Everything from a clean driving record, good credit rating, a request for discounts, and the individual insurance company you select will impact how much you pay for insurance. One of the easiest ways to obtain car insurance quotes from multiple carriers is to use OfficialCarInsurance.com.
We are not an insurance prover and do not sell car insurance. We stay up-to-date on the latest insurance news and make online shopping for insurance easy for you. We will provide you with a side-by-side comparison of several insurance options from a variety of providers across the nation.
Call and speak with one of our agents at (855) 336-3561 or you may also use our convenient online quote form. Don’t hesitate to get your comparison and move into more affordable car insurance today.