The average auto insurance premium was $889 a year across the U.S. Of course, this premium varies due to several factors such as age, vehicle, type of coverage, and driving record.
Having insurance does add to your driving expense, but you are in the driver’s seat when it comes to lowering your premium.
Have you ever asked yourself “why is my car insurance so high?” Well, there are various reasons. Read this article to get 5 great tips for lowering it.
1. Bundle Your Policies
If you have home or renters insurance, use the same insurance company for your automobile insurance. You will get a better price if you bundle multiple policies with the same insurance company. If you have more than one vehicle, you will also get a discount if you insure both autos with the same company.
2. Increase Your Deductible
If you have a low deductible, consider increasing to $500 or $1,000. Take caution before you raise the deductible – you want to make sure you can afford the deductible if you are in an accident. Raising your deductible can save you a lot on your premium.
3. Shop Around
Rates can vary between companies, so it’s always wise to shop around. You shop around for the best deal for anything else right – like a tv? Why not do the same with auto insurance?
You can check out independent agents that will check rates against various companies, or shop online with insurance companies like Esurance. Do your research on the insurance company; make sure it is financially sound.
Take caution here. Don’t just shop for the lowest price. Make sure you have adequate coverage, so compare the coverage amounts before you determine the best deal.
4. Improve Credit Score
If you have a solid credit history, this can also give you lower rates on your auto insurance because this shows you are responsible. Pay your bills on time and keep credit balances low. Be sure you check your credit regularly, so you can fix any errors on your report that may bring your score down.
5. Check Out Discounts
Talk to your agent about various discounts available. These discounts vary between companies and states so be sure to ask. Here are some discounts to ask about:
- Low mileage
- Good student
- Antitheft devices
- No accidents
- No violations
- Long-time customer
- Defensive driver classes
- College student away from home
Make sure you check the final price of the insurance company and the coverage. The lowest price may not be the company that offers the most discounts.
Still Wondering Why Is My Car Insurance so High?
Car insurance is essential and you need it. If you wonder “why is my car insurance so high?” it’s to protect you in the long run, not only if you are in an accident but if your car is stolen, damaged by nature, or even if a stone hits your windshield. You should also consider your insurance before you purchase a car – the premium for a Corvette will probably be much higher than a four-door sedan.
Use the tips above to lower your premiums. Still curious about saving money on your car? Check out our blog for other informative articles such as saving money on car repairs to satisfy your curiosity.