You won’t have a full picture of how much you could potentially save without comparing costs. JungGetty/Getty Images
Inflation may be cooling slightly, but there are certain things — like grocery bills and auto insurance payments — that continue to worry Americans.
Auto insurance prices have risen nearly 15%, with premiums topping about $2,000 a year on average, a recent analysis shows. Motorists in Florida reportedly saw the steepest climb. Unfortunately, most insurance companies are forecasting further rate hikes in 2023. For example, Insurify’s team of experts estimates another 7% rate hike in 2023.
As car insurance prices rise, drivers may be interested in finding ways to reduce their costs. Below we will explore some of the easiest ways to do this.
This will save you a lot on car insurance
You don’t have a full picture of how much you could potentially save without comparing the costs of other auto insurance providers. Trusted online marketplaces can recommend insurance providers to get quotes from. Complete this survey to receive a free quote now.
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For example, Progressive reports an average of $650 in savings for drivers who switch insurance providers.
Mark Friedlander, director of corporate communications for the Insurance Information Institute, recently told CBS Los Angeles that motorists should get at least three quotes a year.
“There are dozens of companies that want your business,” Friedlander told the outlet. “There is so much competition out there. [There are] always ways to get better prices.”
However, do not choose only the cheapest option. You should do your research to ensure that the provider has a good reputation. The Insurance Information Institute suggests reading reviews of companies on your state insurance department’s website or online consumer information sites.
The New York State Department of Financial Services states online that auto insurance buyers should be honest about their driving history, vehicle, and other financial and personal information in order to receive the most accurate quote possible. You should also make sure that the insurer is licensed to sell insurance in the state and that any business done online should take place on a secure website.
Remember that auto insurance providers take into account:
Personal Information: Age, Location, Marital Status, Credit Rating and more. Driving history: accidents, driving records and more. Vehicle: car model, make, year, mileage and more.
Enter some of your personal information about yourself and your vehicle to get a list of suggested insurance providers who can provide you with competitive quotes.
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Other ways to lower your prices
There are several steps you can take to reduce costs, but research and persistence are key. Here are some other tips to lower your car insurance rates (note: this list is not exhaustive):
Search for discounts: Check discounts offered by different vendors. For example, Progressive grants progressive discounts to drivers with teenage drivers (18 years of age or younger) and students with a B GPA or better. You may also be eligible for a discount if you have not had an accident or traffic violation within a certain period of time. Call your provider to see if you are eligible. Check your credit: Contact your insurance provider if your credit has improved (this is how you can check your credit). Lower Rate Cars: If you are preparing to get a new car then consider car insurance rates when shopping. Certain cars are cheaper to insure than others. Report Life Changes: Marital status can make a difference. If you recently got married, contact your insurance company to see if you can get a cheaper rate. Combine your insurance: If you combine your home and car insurance, you may also be able to lower your rates. “When you bundle with us, you get a multi-policy discount if you have an auto policy and home, condo, or renters insurance with us,” says Progressive.
“A number of pandemic-related trends are driving up auto insurance rates across the industry. Inflation has perhaps had the biggest impact – as the cost of goods and services rises so does the cost of protecting our customers on the road.” Progressive explains online, adding that labor shortages and supply chain disruptions and an increase in accidents are all played a role in rising costs.
Ultimately, the best way to save is to compare multiple insurance providers and quotes and policies. If you’re not happy with your current plan, switch. It’s never to late!
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