Shop Around
The best way to get the lowest premium is to compare rates from at least three insurers. Insurance companies review several factors to price auto insurance rates. These factors include things like your age, driving record, credit score, vehicle type, location, and coverage level. Different insurers may weigh these factors differently, so you may get different quotes from different companies. You can use online tools like NerdWallet or Money Expert to compare car insurance quotes from multiple insurers.
Bundle Your Policies
Another way to save money on your insurance is to bundle your policies with the same company. Many insurers offer discounts if you buy more than one type of insurance from them, such as home and auto insurance. For example, State Farm offers an average bundling discount of 23%, while American Family offers an average bundling discount of 18%. Bundling your policies can also make it easier to manage your insurance, as you only have to deal with one company and one bill.
Adjust Your Coverage and Deductible
You can also lower your insurance costs by adjusting your coverage and deductible. Coverage is the amount of protection you get from your insurance policy, while the deductible is the amount of money you have to pay out of pocket before your insurance kicks in. Generally, the higher your coverage, the higher your premium, and the lower your deductible, the higher your premium. Therefore, you can save money by choosing a lower level of coverage or a higher deductible, as long as you are comfortable with the risk. However, you should not skimp on coverage or choose a deductible that you cannot afford, as this could cost you more in the long run if you have to file a claim.
Take Advantage of Discounts
Finally, you can save money on your insurance by taking advantage of discounts that insurers offer. There are many types of discounts available, depending on the insurer and the type of insurance. Some common discounts include:
- Safe driver discount: If you have a good driving record, no accidents, or no tickets, you may qualify for a safe driver discount.
- Good student discount: If you are a student with good grades, you may qualify for a good student discount.
- Anti-theft device discount: If you have an anti-theft device installed in your car, such as an alarm or a tracker, you may qualify for an anti-theft device discount.
- Telematics discount: If you agree to install a device or an app that monitors your driving habits, such as speed, mileage, and braking, you may qualify for a telematics discount.
- Loyalty discount: If you stay with the same insurer for a long time, you may qualify for a loyalty discount.
To find out what discounts you are eligible for, you should ask your insurer or agent, or check their website.
Insurance is a necessary expense, but it does not have to be a costly one. By following these tips, you can compare insurance offers and save money on your insurance. Remember to shop around, bundle your policies, adjust your coverage and deductible, and take advantage of discounts. By doing so, you can get the best coverage at the best price.
