Have you looked at your car insurance bill recently? The national average cost of full coverage car insurance climbed 26 percent from 2023 to 2024, leaving many drivers wondering why coverage has gotten so expensive. Most states require drivers to carry some level of car insurance, but the rate you pay is influenced by a variety of personal factors.
According to Quadrant Information Services, the average annual rate for a full coverage policy increased 26 percent from 2023 to 2024, and the current average cost of car insurance is $2,543 per year.
Some of the major factors influencing high rates are inflation, cost of repairs, poor driving habits, and delayed rate increases filed with state insurance departments after the pandemic.
Below we will take a look at 9 ways you can lower your car insurance premium.
Increase Your Deductible
According to a Forbes Advisor analysis of car insurance deductibles and rates, drivers who increase their deductibles can save an average of 7% to 28% a year.
The higher your insurance deductible, the lower the annual, biannual or monthly insurance premiums may be because you would now be assuming a portion of the total cost of a claim. Keep in mind that the deductible amount will come out of your pocket in the event of an at-fault car accident, which could overshadow the premium savings.
Double Check Discounts
Take advantage of discounts offered by your insurance company to make sure you’re getting the best price on your car insurance.
There may be some discounts you didn’t know about. Companies offer car insurance discounts for a variety of reasons, including owning a home, bundling with renters insurance, driving safely, and getting good grades.
Common Discounts to Lower Your Auto Insurance
- Buying your policy online
- Enrolling in preferred payment options such as automatic payment.
- Bundling your car insurance with your home insurance or multiple vehicles.
- Participating in a safe driving program.
- Having advanced safety and anti-theft features in your car.
- Having an energy efficient car.
Shop Around For Car Insurance
Be sure to get several quotes online, or even from a local insurance agent. Quoting car insurance at least once a year can be beneficial, as rates change frequently. If you’re paying too much, don’t wait to switch. Your current company will refund you the unused portion of your policy when you cancel. Just make sure you’re covered with your new company before canceling.
Also keep in mind that the cheapest insurance isn’t always the best. Focus on the coverage you need and make sure you’re getting quotes that reflect that.
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Maintain a Good Driving Record
Safe drivers always save with Liberty Mutual. In addition to protecting yourself and others on the road, it pays to drive safe.
Always avoid speeding, getting into accidents, and other driving incidents. Not only do you prevent expensive speeding tickets or other moving violation costs, but you also help keep your insurance rates lower by proving you’re a less risky driver.
Additionally, if you have a claims-free or violation-free history, you can receive additional discounts.
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Explore Payment Options
If you can be flexible with your payment methods, you could save on your car insurance premium.
Some insurance companies offer a discount if you pay for your policy with one or two annual payments. You can also save if you elect to pay with a preferred method, such as linking a bank account.
Improve Your Credit Score
What does my credit score have to do with my car insurance? In some states, a credit check may be part of your risk assessment by insurance companies.
Sometimes people with higher credit scores get lower insurance rates because it correlates to making responsible decisions when driving. If you want to start improving your credit score, be sure to pay your bills on time every month and decrease your credit utilization rate.
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Regularly Review Your Insurance Policy
If you’ve had the same car insurance policy for a few years, or maybe several, it might be time to review and see if your coverage needs have changed.
One thing to consider is the older your vehicle is, the less it costs to replace in the event of an accident. This means you might be able to lower your limits associated with vehicle repair, like comprehensive and collision.
Research Insurance Costs
The vehicle you drive plays a big part in how much you pay for car insurance. When choosing your vehicle, keep in mind that the more expensive it might be to repair, the more likely it is that your insurance rate might reflect that. So, adding features like upgraded trim, cutting-edge audio systems, and extra technology could add up.
What are some ways you have lowered your Car Insurance Premium?
