Numerous factors can have an effect on your car insurance rates, including location, age and driving record. But there are ways you can cut costs on premiums by making some simple changes.
Example: Raising your deductible could help lower costs significantly; just make sure that you have enough financial reserves available to afford such an increase in deductible.
1. Shop Around
Shop around to get the best price when it comes to car insurance. Use an online comparison tool, broker or your insurer’s website to gather quotes from various providers and evaluate how your coverage options compare against them.
Save money by eliminating unnecessary coverages such as roadside assistance and rental reimbursement, using telematics policies that monitor your driving behavior electronically to assist with getting discounts, or bundling auto and home policies together to generate further savings.
2. Maintain a Clean Driving Record
Maintaining a clean driving record is one of the best ways to save on car insurance premiums. By keeping tickets, accidents and other infractions off of your motor vehicle report and off your premium by 20-100%. Installing safety features like airbags and antilock brakes on your car also qualifies for discounts; for minor damage incurred that doesn’t involve other drivers consider covering it out-of-pocket instead of filing a claim.
Cleansing up a driving record can be accomplished through taking a defensive driving course, filing requests to expunge certain convictions from your record or simply preventing violations from appearing on it.
3. Increase Your Deductible
Raising your deductible can significantly lower premiums – though doing so means paying more out-of-pocket should you file a claim. Unfortunately, this strategy only works for collision and comprehensive policies.
Life changes may impact how much coverage is necessary, so it’s crucial that you review your policy regularly.
Many factors that determine your auto insurance rates cannot be altered – like location, driving record and credit score – yet there are ways you can save money, including shopping around for different policies, increasing deductibles and looking out for lesser-known discounts.
4. Take a Safe Driving Course
Attending a safe driving course could save you hundreds of dollars on car insurance premiums, since insurers consider these drivers lower risk and less likely to file claims.
New York drivers can receive up to a 10 percent discount upon completion of a state-approved defensive driving course, so check with your insurer to see if you qualify and inquire if such discounts can last three years or beyond. Also consider other opportunities, like online or automatic payments discounts as part of your plan.
5. Look for Lesser-Known Discounts
Car insurance rates have seen a dramatic surge, so now is the time to make every effort possible to cut your costs and save money. By shopping around, raising deductibles, and taking advantage of lesser-known discounts you could slash your premium by as much as 40-50%!
Some top-rated insurers provide dividend policies that give back part of your annual premium; telematics programs using an app or plugin device to monitor driving behavior may also save big money.
Bundling auto, home, and renters insurance policies together can save significant amounts.
6. Drive Safely
Driving safely can play an integral part in lowering your auto insurance rates. This includes remaining focused on the road and avoiding reckless behaviors like speeding, drinking while driving and distracted driving.
State insurance laws and your location also play a factor. Drivers in urban areas, where crime and traffic congestion is more prevalent, tend to pay more than drivers in suburban or rural settings.
Avoiding filing claims when dealing with minor damage (like having your bumper hit a support column in a parking garage) can save money and time.
7. Get a Telematics Device
If you want to save on car insurance, participating in a telematics program could be beneficial. Telematics devices track important details like mileage, speed and braking; where and when you drive; as well as plug into OBD ports in vehicles or using apps on mobile phones.
Telematics devices are easy to setup and typically cost minimal upfront; usually with just an initial device purchase cost and monthly subscription fees to consider. You will however require either a vehicle equipped with an OBD port or phone app compatible with it in order to use one successfully.
8. Take a Driver’s Education Course
If you can afford it, taking a driver’s education course can significantly lower your premiums and demonstrate to insurance providers that you are committed to safe driving practices. Such classes may take place either face-to-face or online.
New York driver’s education courses cost approximately $25 and typically require five hours of study to complete, offering you up to a 10% reduction on auto insurance premiums. Online driver’s ed programs allow more flexible instruction, enabling students to engage with lessons when it best fits them; costs, however, can differ considerably between programs.
9. Bundle Your Policies
Bundling policies with many insurers offers discounts. This can include home and auto, life, boat, RV and renters insurance policies. When making these decisions, however, it’s essential to evaluate their overall costs and ensure they provide coverage suitable for your individual needs.
Be sure to review your insurance frequently as major life events unfold, like getting married or divorced or giving birth. This will enable you to assess whether your current policy remains the best value, or whether other alternatives such as pay-per-mile car insurance would better meet your needs.
10. Drive Safely
Driving responsibly is one of the best ways to cut car insurance costs and lower rates. Slower speeds, maintaining an appropriate following distance and limiting distractions all help bring down rates.
Distractions include anything that diverts your focus away from driving, such as talking on the phone, eating in your vehicle or reaching for items within it. Reducing mileage also saves both you and the environment money – an added incentive.
There are various ways to save on car insurance, from shopping around to taking a defensive driving course – but the key component is driving safely and responsibly.
