Why is my car insurance so expensive, and what can I do to reduce it? The reasons range from the value of your vehicle to your driving habits.
The cost of repairing your vehicle or medical costs and fraud are some things you cannot control.
If you find your insurance rate too high, there are some things you can do to lower it.
You can save on car insurance by following these tips:
- Increase your deductible
- Find out if you qualify for any discounts
- Get quotes on auto insurance
- Keep a clean driving record
- Take part in a safe driving program
- Take a defensive driving course
- Explore payment options
- Boost your credit score
- Participate in a low-mileage driving program
- Take a look at your current policy
- Take into account the features of your vehicle
- Learn how to save with teen drivers
- Make your policies more affordable by bundling them
1. The first step is to increase your deductible
Paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in) is typically one of the quickest and easiest ways to reduce your car insurance payments.
You may be able to do this online or through your insurance company's mobile app. Keep in mind you will need to pay your deductible yourself if you get into an accident.
2. Verify your eligibility for discounts
Make sure you are getting the best deal on your car insurance by researching discounts offered by your insurance company.
Where the company offers Liberty Mutual offers several types of car insurance discounts, from going paperless to getting a new policy before your old one expires.
You can lower your auto insurance premiums by taking advantage of the following discounts:
- Online policy purchasing
- Payment options such as automatic payments can be enrolled in
- Combining your car insurance with your home insurance
- Taking part in a safe driving program such as RightTrack®
- Your car should have advanced safety and anti-theft features
- Having an energy efficient car
- For teens or young drivers, being a good student or being away at school is important
Parking in a garage (especially if you live in a high-theft area) or driving a lot may even qualify you for discounts.
3. Make sure you shop around for car insurance
It is a good idea to get several quotes online or from a local insurance agent.
Focus on the coverage you need and get quotes that reflect it. If you think a cheap car insurance quote is too good to be true, it probably is.
Switching car insurance companies is a good idea if you find a good deal.
4. Keep a good driving record
In addition to protecting yourself and others on the road, driving safely pays off with.
If you avoid speeding, accidents, and other driving incidents, not only will you avoid expensive tickets, but you will also keep your insurance rates lower by proving you are a less risky driver.
A claim-free or violation-free history may also qualify you for additional discounts.
5. Take advantage of safe driving program
You can demonstrate your safe driving habits with safe driving program, RightTrack®, regardless of your driving record.
It's a great way to prove proactively that you're a responsible driver without having to wait for your insurance rates to drop after an accident.
You can save up to 30% on your premiums for the lifetime of your policy by participating in RightTrack. You even get a discount for signing up and participating.
6. Take a course on accident prevention
some comp offers a discount to policy holders in certain states who complete a qualified accident prevention driver course. Some courses can even be completed online.
7. Consider your payment options.
You could save on your car insurance premium if you can be flexible with your payment methods.
You can save if you pay your policy in one or two annual installments. You can also save if you use a preferred method, such as linking a bank account.
Go paperless for your account statements and communications - you'll save on your policy and help the environment.
8. You should improve your credit score.
In some states, insurance companies may check your credit score as part of their risk assessment.
To improve your credit score, make sure you pay your bills on time every month, decrease your credit utilization rate (how much you spend compared to how much credit you have), and make sure your credit report is accurate – if anything is incorrect, you can dispute it.
9. Do you work from home or do you drive a few miles every day?
You may qualify for low mileage discounts if you work from home, commute by public transportation, or have a short commute.
10. Review your current policy.
It might be time to review your policy if you've had it for several years, or if your coverage needs have changed.
The older your vehicle is, the cheaper it is to replace in the event of an accident, which means you might be able to lower your comprehensive and collision limits.
If you have paid off or owe a minimal amount on any loans you have on your vehicle, you may not need gap insurance. You may have to have comprehensive and collision coverage if you lease or finance your vehicle, but if you own your car, you may be able to lower those coverages or opt out.
In some cases, you may even qualify for additional discounts. If you've turned 25, married, or bought a home, be sure your policy reflects those factors.
11. Before buying a car, research insurance costs
There are some cars that are more expensive to insure than others. Think: a fast sports car versus a safe minivan.
It's helpful to know that it's not always the cheapest vehicles that are the cheapest to insure, especially if you're looking for a new car.
In choosing your vehicle, keep in mind that the more expensive a vehicle may be to repair, the more likely it is that your insurance rate will reflect this. So, consider options like upgraded trim, cutting-edge audio systems, and extra technology.
The vehicles with the lowest insurance rates on average:
- Outback Subaru
- Wrangler Jeep
- CR-V from Honda
- Forester by Subaru
- Escape from Ford
- F-150 Ford
12. You can save with teen drivers if you look into ways to do so
There are some ways you can prevent your insurance costs from rising too dramatically if you add a teen driver to your policy.
Several insurance companies, offer discounts to teens3 who get good grades, are away at school, or choose a higher deductible.
13. Bundling your policies is a good idea
One of the easiest ways to lower your insurance rate is to combine your home and auto policies.
If you own or rent your home, you can bundle it with your auto insurance policy and save. In addition to a discount, you'll save time since you will only have one login and fewer payments to manage.
Get a multi-policy quote to find out how much you can save by bundling your home and auto insurance policies.