The cost of insurance can vary by hundreds of dollars depending on your driving record, what type of car you have, where you live, and many other variables. Insurance companies must consider multiple factors including what's happening the market overall.
Sometimes increases in premium happen due to small adjustments for inflation. However, sometimes the increase is much larger and could be based on multiple factors. The auto industry overall is experiencing higher than expected claims and each claim on average is costing more than ever before. Insurance companies need to raise prices to cover these costs and ensure they are able to pay future claims.
If you are trying to lower your auto insurance premiums, here are some ways to save money.
- Compare insurance costs before you buy a car - Before you buy a new or used vehicle, check what it will cost to insure. Auto insurance premiums are based in part on the car's proice, the cost to repair it, it's overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. You can research safety rankings for specific models with the Insurance Institute for Highway Safety's (IIHS) Top Safety Pick ratings tool.
- Consider increasing your deductibles to lower the premium - A deductible is the amount you pay before your insurance policy kicks in. By choosing a higher deductible, you can significantly lower your costs. Before choosing a higher deductible, however, be sure you have enough money set aside to pay it if you have a claim.
- Drop car insurance you don't need - It pays to review your coverage at renewal time to make sure your insuranceis in line with your needs. For example, if your car is worth less than 10 times the premium, purchasing physical damage coverage may not be cost effective. Whe this is the case, consider dropping collision and/or comprehensive coverage. It's easy to research the value of your vehicle online - Kelly, National Association of Auto Dealers (NADA), and TrueCar are among the many free sites available.
- Package your home and auto insurancewith the same insurance company - Many insurers will give you a break if you "bundle" two or more types of insurance, or have more than one vehicle insured with them. Most offer some kind of discount to loyal customers. These discounts can add up to some considerable premium savings.
- Your credit history does matter - Establishing a solid credit history has many benefits, including lower insurance costs. Most insurers use credit information to price auto insurance policies. (Research shows conclusively that people who effectively manage their credit make fewer claims). To be sure your getting the good credit you deserve, it's a good idea to check your credit record on a regular basis to be sure all information is accurate.
- Take advantage of all available discounts
- Some companies offer discounts to motorists who drive less than the average number of miles per year. Lower mileage discounts can also apply to drivers who car pool to work.
- Companies offer discounts to policyholders who have not had any accidents or moving violations during a specified period of time.
- There are mature driver discounts for policyholders over the age of 55.
- If there is a young driver on your policy who is a good student, has taken a driver's education course or is away at college without a car, you may also qualify for a lower rate or discounts.
- There can be additional savings if premiums are paid in full instead of paying on installments.
- Many companies also offer discounts based on safe driving habits using a telematics program.
Car insurance is a must if you own a vehicle. But you don't want to spend more than necessary on a policy, and you shouldn't have to. By knowing exactly what affects your auto insurance rates, you can figure out how to save on car insurance and get comprehensive coverage without breaking the bank.
Every insurance company offers different ways to save. Call us today at 219-972-6060 to make sure your auto policy has all of the discounts available to you.
Source: Insurance Information Institute