7 Tips To Help You Save on Auto Insurance

July 28th, 2021 by admin

7 Tips To Help You Save on Auto Insurance

If you drive a car, you have car insurance. Or, you should. Auto insurance is not only required by law, but it is necessary for responsible driving. Auto insurance protects drivers during everyday events that can occur on the road, such as car accidents and injuries.

If you total your car or injure someone in a collision, paying out of pocket for damages can bankrupt you. Auto insurance is invaluable for drivers. 

Still, auto insurance can get expensive. If you feel like you have paid too much for insurance in the past, you might not realize that there are several ways you can save money on your policy. When you purchase auto insurance at face value without shopping around, you might be missing out on some great discounts.

Below are 7 tips that can help you save money on auto insurance:

1) Bundle Multiple Types of Insurance Coverage 

In general, insurance companies do not just offer one type of insurance.

Insurance companies love when customers stick with them for all of their coverage needs. They love it so much, in fact, that they offer customers lucrative discounts for bundling coverage. Customers often have more than one of the following policies:

You can bundle your insurance coverage through the same agency and save money. Your insurance company is likely to offer you a decent discount on your auto insurance premiums for doing so. Additionally, it will be more convenient for you to handle your insurance policies all in one place.

2) Opt for a Higher Deductible

A practical way to save on your auto insurance is by choosing a higher deductible. Your deductible is the amount you pay towards damage repairs due to an accident. So, when you have a low deductible, your insurance pays for most, if not all, of your repairs. If you opt for a high deductible, usually $500, you pay $500 (or whatever your deductible is) toward your repairs.

While low deductibles are great if you need to submit a claim, high deductibles can significantly lower your monthly payments and insurance premium overall. If you go this route, make sure you are able to pay your higher deductible in the event of an insurance claim. 

If you have group medical coverage through your employer, you may also be eligible to tweak your Personal Injury Protection (PIP), saving additional money.  Ask your agent about this cost-saving option.

3) Take Advantage of Safe Driving Discounts

Auto insurers want their customers to drive safely. On one hand, everyone should drive safely for the good of society. Safe driving keeps the roads operating smoothly and prevents people from getting injured in car accidents. On the other hand, safe driving leads to fewer insurance payouts and saves auto insurance companies money. 

Additionally, some auto insurers offer separate discounts for customers who sign up for and complete certified defensive driving courses. These discounts are separate from the safe driving discounts and can stack for extra savings.

We have access to multiple auto insurance carriers to offer you the greatest safe driving discounts.

4) Work to Improve Your Credit and Lower Your Auto Insurance

Auto insurers argue that there is a significant correlation between drivers with low credit and drivers who make frequent auto insurance claims. Therefore, drivers with poor credit are subject to higher insurance premiums and higher monthly auto insurance rates. 

If you can improve your credit score, you might see your auto insurance costs decrease. Keep track of your credit record and check it regularly to make sure you are not going to experience increased insurance rates based on your credit profile. 

5) Research Cars with Low Insurance Rates

Did you know certain cars are more expensive to insure than others? If you are in the market for a new car and new auto insurance, research auto insurance costs before you decide which car to purchase.

Look for cars with the following attributes: 

  • High safety ratings
  • Low likelihood of being stolen
  • Low costs for repairs

Sports cars and pickup trucks are the most expensive cars to insure. However, there are several factors that go into auto insurance premiums for different cars. Honda Civics are safe, for example, but they are more likely to get stolen, so their car insurance prices are higher. Additionally, different insurance companies vary in pricing policies. 

There is lots of data available showcasing specific makes and models of cars that are cheap and expensive to insure. Take a look at these options before buying your next vehicle so you can get a lower insurance rate.

6) Save by Eliminating Unnecessary Coverage

If you are leasing your new car from a dealership, you are likely required to have comprehensive auto insurance coverage. However, once your car is paid off, you should immediately revisit your auto insurance policy to drop the coverage you no longer need. 

If your car is an older model, 10 years or older, you could be paying for excessive coverage you may no longer need. Consider eliminating your collision and comprehensive coverages. You may be paying more in insurance premiums than your car is actually worth. You can save a lot of money by trimming the fat!

7) Save Money on Your Auto insurance with Telematics

Last but certainly not least, for its ability to save you a great deal of money is telemetrics. Auto insurance companies that use telematics supplement or forego using traditional factors like driving records, credit scores, and gender to determine rates. Instead, telematics assesses a customer’s driving based on analytical data to determine rates. 

Telematics can be used to offer low mileage discounts, safe driving discounts, and feedback for drivers based on their personal driving style.

Companies that use telematics typically use devices installed in customer vehicles or offer smartphone apps drivers can use that monitor driving behavior and analyze additional data to calculate discounts.

Contact us today at 201-525-1100 to discuss your car insurance needs and how we can save you money.