7 Secrets for Getting a Lower Auto Insurance Rate

The average cost of vehicle insurance in the US stands at around $1,592 per year. For many, this is a staggering figure and can easily cut into your household budget. So how do you get those premiums down?

With a little planning, it is possible. Read on as we discuss how to lower your auto insurance.

1. Bundle Insurances

This is probably the easiest tip of all, but it takes a bit of timing. In your household, you probably have multiple types of insurance. They could include everything from home and contents to second drivers for a car.

If you approach an insurer about one policy, it is a small referral. Yet if you approach them about a lot, the amount they can net suddenly becomes more attractive. You may be able to approach them about the following:

  • Auto insurance
  • Multiple vehicle auto insurances
  • Homeowners insurance
  • Condo rental insurance
  • Rental insurance
  • Accident insurance
  • Pet insurance

All you have to do is time it so that you do this as most of your policies are expiring. You will also find it is much easier to handle a number of policies that are all in one place, rather than having to call multiple providers.

2. Improve Your Driving

For some people, this one may be a bitter pill to swallow. However, the worse your driving is, the higher your insurance costs go. You may have had charges for driving under the influence, speeding tickets, and a record of insurance claims from previous crashes.

Think about it from the insurance company’s perspective. If two people walk in wanting to get insurance on the same car, one with a perfect record and another with a list of previous misdemeanors, who would you expect to pay more?

In the here and now, there really is nothing you can do about it. Over time, you can work on becoming a better driver. Stick to the speed limits, be more cautious, don’t get distracted, and don’t jump lights.

3. Raise Your Deductible

When you take out insurance, they will ask you what deductible you wish to have. This is an amount you pay before any insurance payout comes into effect. The higher the deductible, the more you pay in the event of a crash, but the less your insurance costs.

Imagine you take out a policy and your deductible is $500. The total damage in the crash comes to $2000. You would be expected to pay $500 while the insurance company pays the other $1500.

Of course, raising the deductible is only a safe bet if you are a safe driver. If you know you are prone to accidents and are driving an expensive car, it may be better to just choose a low deductible and take the hit.

4. Shop Around

Different insurers will have different factors they value. For example, some may take age into consideration more, while others make the type of car being driven more. Therefore, none of them will give you the same quote, and you may find it is also totally different from a quote someone in a similar situation may have.

When looking for insurance, it pays to shop around. Speak with at least two or three providers, and don’t be afraid to tell them the offers others have given if they are lower.

The luxury of shopping around does only happen if you allow plenty of time. If you are rushing trying to get insurance at the last minute, then you will end up with a poor deal.

5. Ask About Discounts

There are many discounts available to you when buying car insurance, but you may have to ask for them. Some discounts include multi-car policies, discounts for careful drivers, or being a member of an association.

However, there are some that remain quite secretive. Did you know you can get money off for specific features on your cars, such as safety features and anti-theft mechanisms?

It may also be worth noting that if you are planning on doing low mileage, you can also get a sizable discount. The insurance company will give you a set amount of mileage each year, which you can not go over for a discount.

6. Change Your Car

The more expensive the car, the more insurance will cost because repairs are more expensive. However, it’s not only expensive new vehicles that can cost lots to insure.

The power in a car is also a deciding factor, particularly if you are a younger, inexperienced driver. Other factors can be the safety record of the model, or how likely it is to be stolen.

7. Eliminate Unneeded Coverage

Depending on your circumstances, you may not need coverage for everything. If you are leasing, then it will be a requirement to have comprehensive insurance. But once it is paid for and the car is yours, you don’t have to continue it.

Once a car gets old, collision and comprehensive insurance can cost more than the value of the car itself. Add up your premium and multiply it by ten. If the car is worth less than this amount, then don’t bother paying it.

Locating Auto Insurance

Auto insurance premiums can be brought down. Drive carefully, consider the vehicle you are driving, and let the provider know about everything you can do to get a discount. Make sure you shop around well in advance.

Your first stop should be the Soden Agency. We know life can be complex, so we provide individualized coverage instead of one size for all policies.

Click here to request a quote from New Jersey’s best insurance and risk management company.