5 Ways to Get Lower Auto Insurance Costs in 2024
Who wouldn’t want to pay less premium for their car insurance coverage compared to what everyone else in their state is paying? Customers only do not want to have the best bargain but they secretly enjoy the feeling of knowing that they ripped you off.
This is not contestable. We write sales copies for insurance companies and agents, so we are speaking from the marketing point of few.
How do you lower your auto insurance costs and still have all the features and benefits you secretly crave for intact as a customer?
In this article, you will learn how to ethically negotiate your auto insurance rates and lower your premiums.
Here are the top 5 things you can do to lower your auto insurance costs:
1. Shop around for your auto insurance coverage
The cost of auto insurance coverage differs from one insurance company to another, so for you to get the best auto insurance rate, it will be in your best interest to shop around.
Get in contact with at least three companies and request auto insurance quotes from them. You can do this over the phone or through their website. Every reliable insurer will always make it easy for their prospects to get auto insurance quotes online without a phone call.
If you don’t have the luxury of time to manually compare insurance quotes, you can get in touch with your state insurance department and look through their records. Quite a good number of states in the United States, Canada and Australia provide comparisons of prices charged by major insurers.
The essence of shopping around is to ensure that no one is ripping you off and for you to enjoy peace of knowing that you have not gotten yourself trapped with an auto insurance company known for denying claims.
When shopping around for a better auto insurance quote, don’t focus on prices alone. Ask friends and relatives for their recommendations.
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2. Compare insurance costs before choosing a car to purchase
There are cars you need to avoid like a plague due to high insurance costs, especially if you are a middle-class income earner.
Auto insurance companies in the United States, Canada, the United Kingdom and Australia consider the price of a car, the cost of repair, the likelihood of theft and its overall safety when calculating the car insurance premium.
You can easily get a good auto insurance discount on your coverage if the car you bought has features that reduce the risk of theft and overall safety.
You can learn more about cars to avoid like a plague in order to reduce your insurance premium and factors that determine the cost of car insurance coverage in your state from the Insurance Institute for Highway Safety.
To lower your auto insurance quote, don’t just buy any type of car just because you can afford it at the moment or because it’s what is available at exactly when you can afford one without making reference to its insurance cost.
3. Purchase your home and auto coverage from the same insurance company
Chubb for instance offers both homeowners and cyberbullying insurance coverage. Their operational policy states that you can’t buy their cyberbullying insurance policy without first buying their homeowners’ insurance coverage.
But as for other insurance companies offering life, car, travel, business or health insurance coverages, it’s not mandatory to buy all from the same insurer.
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However, if your desire is to lower your auto insurance costs, one of the fastest ways to achieve that is to buy your homeowners and auto insurance coverages from them.
Some, for example, GEICO can even give you an auto insurance discount if you buy two or more types of insurance from them. It’s best defined as multipolicy discount. If you’ve been a long-time customer, you can also get them to lower your car insurance costs.
4. If you take lower mileage, you will get car insurance discounts
Like we said earlier, the essence of shopping around isn’t just because of the insurance costs – even though it’s a necessary factor to consider when buying an auto insurance policy.
By shopping around for your auto insurance policy you will realize that there are some companies in the United States that offer discounts to car owners and drivers who drive a lower than average number of miles per year.
If as a driver you belong to an association that car pools to work, you are also likely to get your auto insurance costs lowered, giving you low mileage discounts.
Beside the insurance benefits of carpooling, it can also help you to reduce the costs you all pay towards road construction and maintenance. It can also mean that there will be less greenhouse gas emissions.
5. Request for higher car insurance deductibles
The first thing we need to look at here is: What is a deductible? Then we can talk about how increasing your deductibles can help you lower your auto insurance costs.
What is a car insurance deductible?
Your car insurance deductible is the amount you are required to pay when you make a claim on your policy. You will be held responsible for paying this very amount toward an insured loss in relation to the claim you made.
Even though you are likely going to get 40% or more off your car insurance premium when you request for a car insurance deductible of $1,000 be sure you have enough money set aside to pay in case you make a claim.
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In this case, you may need to consult an independent car insurance agent for a proper guide on the most appropriate amount to choose as your car insurance deductible so that the customer service representative of the insurer won’t make you choose an amount you will end up regretting just because you want to get lower auto insurance costs.
Conclusion
If you are still wondering why your auto insurance quote is so high, chances are, you’ve not done any of these 5 things you can do to lower your auto insurance costs or because you have a poor credit score. Because you had an accident in the past or you have bad driving record are not the only reason why your car insurance cost is so high.
