Auto insurance is required in all 50 states—so if you own or regularly drive a vehicle, you won’t be able to avoid paying the monthly insurance premium.
Auto insurance rates are affected by a number of factors, including your age, age/make/model of your vehicle, where you live, and your driving history, but there are a few simple ways to save so that the cost better fits your budget:
Different insurance companies offer different rates and discounts, so it’s important to quote other insurers to make sure you’re getting the right price. Some companies will offer a discount for loyalty, but the discount may still be more expensive than another company altogether.
It’s especially important to compare if your rates increase because of a claim, or you add a young driver to your policy. You can quote different companies online or through an insurance agent.
ASK ABOUT DISCOUNTS
Insurance companies offer a variety of discounts that you could qualify for. Not every company offers every discount, but you should always talk to your agent about your options. Examples could include:
- Customer loyalty
- Bundling auto and home
- Early renewal
- Good student
- Driver Affiliations
- Emergency roadside assistance
- Driving history
- Accident free
- Safe driver
- Defensive driving
- Anti-lock brakes
- New car
- Safety features
SET UP AUTOMATIC PAYMENTS OR PAY IN ADVANCE
Many insurance companies offer discounts if you set up automatic monthly payments, pay your monthly premiums in advance, or pay your annual premium in full. You may even get a discount if you have paperless billing.
MAINTAIN GOOD CREDIT AND DRIVING HISTORY
Accidents, tickets, claims, and poor credit can all increase your monthly premium—sometimes significantly. One accident can raise your premium 30% or more. It’s important to maintain safe driving and a good credit score to help keep your costs low.
While auto insurance can be expensive, especially if you have a young driver, new car, or accident on your driving record, it doesn’t have to break the bank. Talk to your insurance company or agent about options available to help save you money.