If you’re a driver, then the burden of rising car insurance premiums can seem as inevitable as death and taxes. True enough, the cost of car insurance is mostly a one-way street, with premiums steadily increasing over the long game as cars get more expensive and fewer and fewer new drivers enter the pool.
Still, there are loads of opportunities for you to reduce future increases or even drop your premiums right away. Here are some actionable ideas for cutting your car insurance costs:
Talk to Your Provider
Funnily enough, the most obvious step to take is the one most often overlooked. Contact your insurance provider and plainly ask them about reducing your premiums. A good agent will be able to present you with the full range of options and opportunities for lowering your costs. They’ll clue you into discount programs, bundle options, or safe driver benefits that may not have fit your needs or profile when you chose your policy. They may not have even existed. And as anyone who’s ever tried to cancel a cable subscription could tell you, big companies rarely go out of their way to tell their customers about new ways to save money. You have to ask for it.
Bundle Your Policies
Most major insurance companies which offer auto coverage will offer discounts for bundling policies. By purchasing homeowners insurance and personal auto insurance together in a single policy, you can receive across-the-board reductions to your premiums. Just remember that bundle discounts only save you money if the separate policies are themselves cost appropriate to your budget. Discounts on wildly overpriced coverage will still leave you overpaying, and you’d be better off looking elsewhere. Speaking of…
It’s Okay to Shop Around
Changing providers to take advantage of new or first-time customer discounts can be one of the most effective and immediate ways to reduce the cost of auto insurance premiums. It’s often a great idea if you’re in a tight spot. It’s not at all unusual to review rates, get quotes or even change providers every 2 years. Insurance companies offer aggressive pricing to get new policyholders through the door, and there’s no reason you shouldn’t take advantage of that.
Just be aware the prices can be deceptive, and you should always review terms carefully to make sure you’re not signing up for a policy that saves you money at the outset but will lose you money by the end of the year. Working with a reputable insurance brokerage like Arthur Blake Insurance can help you to wade through policy-speak and ensure you’re making a smart financial choice.
Increase Your Deductible
As with all forms of insurance, the more you’re willing to pay in the event you need to make claim, the less you will pay in monthly premiums. If you have a good driving record and can afford the relative risk, you may be able to reduce your monthly cost by upping your deductible. If nothing ever happens, that’s money straight in your pocket. However, be aware that upping your deductible does not always have the dramatic effect on monthly premiums you might expect. This will depend on your insurance provider’s own policies as well as your customer profile, driving record, and the many other factors that influence your rates. Talk to your provider about upping your deductible, and see what they can offer.
Improving Your Customer Profile
This is the biggest bucket of all, and it refers to all the many things you can do to make yourself a more attractive (i.e. less risky) customer for your insurance provider. The less risk you pose, the less you will pay for insurance. Simple as that.
You can improve your customer profile by:
- Having a good driving record by avoiding accidents and moving violations
- Driving cars in more affordable insurance groups, which generally refers to less expensive cars as well as hybrid and electric cars
- Improving your credit rating
- Installing anti-theft devices
- Driving less to secure low mileage discounts
Whether or not your provider offers any or all of these and the degree to which they will impact your premium can really vary. Talk to your agent to explore your options.
Of course, another way to get the best price and value for your car insurance premiums is to work with an independent insurance brokerage that puts your needs over those of any insurance company. Arthur Blake Insurance has worked closely with our clients for over 20 years building custom insurance policies that truly suit their needs and budget. Schedule an appointment or give us a call today to discuss your needs.
Arthur Blake Insurance | Plano, TX | 972-954-6383