Trusted Choice® asked fans on Facebook what questions they had about auto insurance. Responses ranged from “what to do after an accident” to “Am I covered if…?” But far and away the question on most people’s minds was “How can I save money on my auto insurance?”
It’s a common question, and in tough economic times, one that warrants consideration. Of course, keep in mind that the extent of coverage is an important factor that determines the cost of your insurance. The cheapest policy is not necessarily the best.
Here are a few ways that you might be able to save on auto insurance, while at the same time taking steps to reduce your risk:
- Defensive Driving— Clean violation record, driver’s education courses for teenagers and defensive driving or accident prevention courses for adults (insurance discounts for the latter are required in some states).
- Security Systems—Alarms, electronic locks and disabling devices.
- Changing Driving Habits—Commuting by public transit, using a company vehicle for work-related travel and car-pooling.
- Increasing Deductibles – You can also lower your insurance rates by requesting higher deductibles (the amount of money you pay before you make a claim). Increasing your deductibles on collision and comprehensive coverage from $250 to $500, will bring your rates down.
- Remove Coverage – As your vehicle ages, its value may decrease to the point where collision and comprehensive coverage are no longer cost-effective. If you can absorb the financial impact of a loss, you may not need these coverages.
- Pay in full – Many companies will give significant discounts if you pay the premium in full.
- Automatic Payments – Can’t pay in full? Discounts and/or lower installment fees are also available if you use automatic electronic monthly payments from your checking account.
- Telematics – Allowing the insurance company to track your driving habits through a phone app or device in your car can save as much as 30% on the cost of the insurance.
- Lower Annual Mileage – Many companies will give discounts if you drive your vehicle less than 8,000 miles annually. Make sure to let your agent know this to be sure to get this discount. You will likely need to provide odometer readings annually to maintain this discount.
- Bundling – Many insurers also offer discounts of up to 20% if you insure both your home and automobile with the same company. The discount would apply to both policies!
Most Important: Shop Your Coverage Regularly
It’s not necessary to shop your coverage every year. Rates are adjusted annually by insurance companies. But, these are likely small adjustments. However, these adjustments can add up over time. Shopping your coverage every three to five years is a good idea. If for nothing else, you’ll find that your current insurance is still competitive.
Part of the value of working with a Trusted Choice Independent Agent is that we have the ability to work with more than one insurance company. Which means that we can shop your coverage for you. You won’t need to contact several different companies to get their rates. In addition, we can help identify and explain different coverage options and discounts, so that you’re getting competitive pricing on a choice of products to find what’s right for you.
How Can I Get A Quote On Auto Insurance?
Click here to be taken to our quick auto insurance quote form. Or, just give us a call at (847) 291-1313 and we’ll be happy to take the information over the phone.