7 Ways to Lower Auto Insurance Premiums
With the Insurance Industry bunkering down in this current hard market, rising premiums are affecting everyone involved. However, as previously discussed with home insurance, all hope is not lost. As your Insurance Brokerage, our job is to advocate for you regardless of how difficult the market may be. With that said, here are 7 ways to help lower your auto insurance premium.
1) Multiple-Driver Policies
Insurance companies offer incentives in the form of discounts for multiple drivers and vehicles. Talk to your broker about the number of drivers and vehicles that may be included on one policy. Spouses and children are the most common additional drivers; however, two non-related people are able to take advantage of these discounts as well if they have joint-ownership of the vehicle.
2) Utilize Public Transport
Someone who drives a couple hours to-and-from work every day will very often pay a higher rate than someone who drives 20 minutes; or doesn’t commute at all. Just because you have a car doesn’t mean it’s always necessary to use it. More miles mean higher premiums.
Using public transport once or twice a week for your daily work commute can knock miles off of your vehicles annual use – and that will allow for a decrease in premiums. Moreover, you’ll be helping save the environment so it is a double-whammy.
3) Avoid Massive Gas Guzzlers
As much as we may love the thunderous roar of a V8 engine or the shriek of a supercharger coming to life, insurance companies don’t. Despite being safer because of the technologies that come with high-end vehicles, repair costs can be absurdly high. This will almost always translate to a higher premium.
A less- expensive car that comes with a reasonable safety features is the golden ticket in this situation – bringing with it a much lower premium. Furthermore, insurance companies will often offer discounts if a car runs on an alternative fuel source – such as electricity. This way, you save your wallet and the environment.
4) Drive Safer
If your method of driving includes regularly breaking the speed limit, swerving in and out of lane, checking your phone while driving you may accumulate violations and claims quite quickly. These violations cause immense spikes in premiums due to their effect on your driving record.
Being a safe driver is imperative to a lower insurance premium. Don’t text and drive, don’t speed, and obey the laws of the road. The longer you stay out of trouble, the better your premiums will be.
5) Install Anti-Theft Devices
Making your car harder to steal can lead to a reduction in your premiums – especially if you reside in an area that is considered to be higher-risk. However, make sure to contact your broker first.
Not all anti-theft devices are the same – some cost more, some are less efficient. Before making a decision on which device to get, make sure that the insurance company is aware and has agreed to offer a discount for the installation the device.
6) Increase Your Deductible
The deductible is what you have to pay out-of-pocket before your insurance kicks in and takes care of the rest. Being willing to pay more yourself will result in a lower premium. If you have confidence in your driving and know yourself to be at a lower-risk of any kind of accident or violation, it may make sense to increase your deductible for a lower premium.
No decision of this nature should be made without consulting your broker first.
7) Speak to Your Broker
Who better to help you find the sweet spot than your broker? Keeping an open line of communication with the person who handles your insurance is imperative. By updating your broker on your situation (drivers, vehicles, address, commute to work, anti-theft devices and more) can impact your coverage as well as potential cost savings. Your broker helps guide you through your policy, keeping you protected at affordable costs.
Your broker is also aware of discounts that are specific to your situation and may not be general knowledge. Contact your broker today and find out how they can help you.
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Source: Investopedia.