5 Ways To Cut Auto Insurance Costs

Now is a good time to take a fresh look at your auto insurance.

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the Covid-19 pandemic leads to a dramatic reduction in transport of all kinds. Between closures, quarantines and social distancing protocols, far fewer people were flying and driving, and despite the growing number of people vaccinated, we have yet to reach pre-pandemic travel levels.

Auto insurance companies have responded to the pandemic with price cuts and discounts, but now more people are back on the road and reassessing their car insurance blanket. Even in the absence of a pandemic, shopping for auto insurance is good for your wallet – auto insurance costs can be quite variable and you can negotiate when it comes to your coverage.

In addition, there are a lot of factors to consider. Maybe you’ve just bought a new car and want to make sure your coverage extends to collision damage. Maybe you’ve taken a defensive driving course and want to see if your premium goes down. Perhaps you work from home all the time and need less coverage. Or, maybe you’ve had a at-fault accident and your premiums are no longer manageable with your current insurer. All of these are a good reason to contact your auto insurance company and find out about your options, as well as start calling other companies to see what savings they might offer.

One important thing to note, even if you now work remotely on a permanent basis: Do not cancel or suspend your insurance if you are still driving, even if only occasionally. Driving without insurance is illegal. And trying to reinstate a policy after it’s canceled can result in even higher premiums.

So, are you ready to save? Here are five great steps you can take to save money on your auto insurance.

1. Start comparing

Even though life in the United States is slowly returning to normal, it’s still a great time to shop. Chances are your insurer has their own discounts and promotions to consider, but that shouldn’t stop you from shopping around – other insurance companies may offer even bigger discounts, more relief options, or premiums. lower. Check out CNET’s summary of the 10 best car insurance companies for 2021 to get a better idea of ​​your options.

2. Call and ask

Insurance companies understand that the pandemic has changed the way many people drive. They also understand that many of their clients are struggling financially and may be willing to provide help.

“Insurance companies recognize this is a difficult time and, in response, many have offered credit, refund, premium adjustment, or premium reduction, for a current and specified period,” said PJ Miller, independent insurance agent at Wallace & Turner Insurance. .

Here’s how you can contact some of the best insurance companies to ask for potential discounts and reliefs.

If you purchase auto insurance from one of these companies, it is worth checking to make sure you are taking advantage of all of their available programs.

3. Update your driving information

Many of the factors that affect the price of auto insurance are relatively fixed, including your driving record, location of residence, and credit score (in applicable states). But a few are variable, such as the number of kilometers driven per day. If you drive less often than before, this may represent an opportunity to lower your premium.

From the perspective of your insurance company, the more you drive, the more likely you are to have an accident. If you went from commuting to working from home during the pandemic, your lower weekly mileage may translate into a lower premium.

Note: Anytime you make changes to your stated mileage (or other items in your insurance profile), it’s important to update your policy. Inaccurate or outdated details on a policy could negatively impact claims.

4. Increase your deductible

Changing your deductible may lower your premium, but it can also end up costing you more in the long run if you have an auto accident. The average policy has a $ 500 deductible, which means you’ll have to pay $ 500 out of pocket before insurance takes effect. If you increase your deductible to $ 1,000, you can reduce your monthly premium. Especially if you don’t drive a lot at the moment, it might be worth it.

5. Combine insurance

Many insurers offer more than one type of coverage and may give discounts to customers who purchase more than one policy. If you bundle policies for one house or boat, you may get a lower rate for each. Allstate, Mutual Freedom, and GEICO each premium offer groupage discounts – depending on the policies and coverages you take out together.

The editorial content on this page is based solely on objective and independent reviews of our editors and is not influenced by advertising or partnerships. It was not supplied or ordered by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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