Monday , 17 January 2022

Pay Less In Car Insurance – Here’s How

…Like most Americans, you may be eager to spend after a year of lockdown-induced depravation, but splurging on car insurance wasn’t exactly what you had in mind. Fortunately, there are plenty of ways to cut your car insurance premium, including these 9 tried-and-true methods.

This post by Lorimer Wilson, Managing Editor of munKNEE.com, is an edited ([ ]) and abridged (…) version of an article by Katherine Reynolds Lewis, for the sake of clarity and brevity to provide you with a fast and easy read. Please note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

1. Get a Mileage-Based Reduction

If you used to drive some distance to the office and now work from home or have since retired, you may be eligible for a low mileage discount. Most auto insurers offer one when your annual mileage drops below 7,000 or 7,500, which is significantly less than the typical 12,000 miles most Americans drive a year…

2. Increase Your Deductible

Raising your deductible from $200 to $500 could reduce the cost of your collision and comprehensive coverage by 15% to 30%…[and] going to a $1,000 deductible can save you 40% or more

3. Drop Unnecessary Coverage

Although most people tend to be underinsured, it’s possible your policy includes coverage you don’t need…For instance, if you already own multiple vehicles, coverage that pays for a rental car when yours is in the repair shop is probably superfluous, and collision coverage may be unnecessary if your vehicle is so old that even a minor accident would likely result in the need for a replacement….[That being said,] don’t be too quick to drop coverage for collision, comprehensive or both as comprehensive coverage protects you in the event of theft, vandalism or damage from a storm or hitting a deer, for example and most leasing companies require both collision and comprehensive, as do lenders for financed vehicles.

4. Bundle Policies

If your auto policy is issued by a different company from the one insuring your life or home, call all three insurers and ask if bundling the policies would be cheaper as customers could save up to 17% if they have homeowners, renters, condo or life insurance with State Farm, in addition to vehicle insurance, for example…

5. Drive More Safely

The average car insurance premium is $1,674 across the U.S. On average, the premium rises $355 if you get a speeding ticket, $731 for a car accident, $187 for a lapse in coverage, $1,662 if you’re convicted of driving under the influence and $1,883 to insure a teen driver so being a good driver is the No. 1 way to get great insurance rates. 

You may be able to lower your premium 10% to 15% if you improve your driving record, take a defensive driving course or install telematics equipment that alerts your insurance company about unsafe driving, such as braking sharply, cornering, cellphone use and speeding…

In addition, seniors may be eligible for extra discounts…if those people take a defensive driving course.

Also, Safety and anti-theft features on a newer car can also lower your rate. Geico, for example, offers up to a 25% discount off the comprehensive portion of premiums to customers who install anti-theft alarm systems.

6. Improve Your Credit

…Like lenders, insurers look at how their customers manage credit to get an idea of risk and to price policies. Better rates are given to those with good credit scores, typically 700 or above...

7. Leverage Your Memberships

…Insurers offer discounts through educational, professional, employer and military organizations, not just AARP. For example, Geico gives 12% to 15% discounts to members of many alumni, educational and professional organizations as well as military personnel and federal employees.

8. Consider Your Car Model

The make and model determine how much to charge customers. For example, a Honda Odyssey has an average annual premium of $1,454 compared with $2,225 for a BMW 330i or $1,740 for a Toyota Prius…Counterintuitively, newer cars with better safety features can be more expensive to cover because they rely on complex electronics embedded throughout the car.

9. Comparison Shop

You won’t know if your current premium is competitive unless you periodically check to see what other insurers charge…[which might enable you to save] hundreds or even thousands of dollars,

[Keep in mind, however, that]…”cheap isn’t always better. In addition to the policy’s cost, check ratings agencies…to assess the insurer’s financial health and the company’s track record for how easily claims are processed and paid by searching reviews and customer satisfaction surveys…

Related Articles From the munKNEE Vault: 

1. New Auto Insurance Comparison Service Will Save You $Hundreds – Check It Out!

Are you aware that you could receive a large discount by using this new startup’s service? In addition, if you live in certain zip codes, you may get extremely low rates.

2. Reasons Why You Should Get An Extended Warranty For Your Car

3. Here’s How Your Car Insurance Rate Is Calculated & Some Outlandish Ways to Reduce It (+2K Views)

Below are 10 factors considered by insurance companies when establishing what you have to pay for auto insurance coverage and some suggestions (some rather outlandish) how you might be able to positively influence some of them to your financial benefit.

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