Here’s How To Save Money On Car Insurance As Inflation Raises Rates

The the cost of car insurance has been rising in 2022. The Consumer Price Indexthe main symbol of inflationshowed that auto insurance rates rose 1.3% in July after rising 1.9% in June.

Major auto insurance policies began to receive widespread approval interest rate increases at the end of last year, raising wages anywhere from 3% to 12%, according to S&P Global Market Intelligence. Along with the constant climbing inside prices of goods and services in the US, high insurance costs are squeezing consumers, and premiums are not high. Along with high car insurance rates, fuel prices have also taken a hit top records this year, making the drive all the more expensive.

Here are a few ways to reduce the risk of excess insurance.

1. Increase your deductible

Add your own deductible — your out-of-pocket costs before your insurer picks up the bill for what you need — can lower your premiums. This move may make sense if you don’t drive much at the moment, don’t have a history of accidents on the road or if you need to reduce your monthly insurance costs. Doing this can cost you in the future in the event of an accident, however, because you will have to pay more before your carrier damages it. You need to make sure that you have enough cash to cover a large sum of money in the event of an accident.

2. If you have an older car, consider a lower down payment

Older cars may not be worth the insurance coverage like your shiny new Tesla or all the bells and whistles of a Mercedes-style policy. If your car is about to roll, you may need to reduce the impact of the car or the total coverage of the car, both of which damage your car.

Whether you should give up anything depends on the value of your car and the relative value of your insurance. Experts say that if your car is worth 10 times the annual value, buying car cover may not be the cheapest option. One of the fastest ways to see a tree is to go through it Kelley Blue Book on the Internet. For example, say your annual income is $1,600; 10 times that would be $16,000. If your car is worth more than $16,000, then it may make sense to reduce the car insurance.

3. Use more walking or driving to reduce your mileage

Carriers may offer you a discount if you have low mileage, meaning you drive fewer miles per year than other Americans. Generally, you would be considered a low mileage driver if you drive less than 7,500 miles per year, but this is not a bright line rule. The factors that determine whether you are a restricted driver depend on the country you live in, your age and gender.

How much you save depends on individual factors, in addition to the car insurance company you sign a policy with. State Farm offers one of the cheapest monthly plans at $128 for low-income drivers, according to one. analysis.

If you have a lot of commuting in your area, riding the bus a few days a week (or carpooling with others), may qualify you for a small mileage discount. If you don’t live in a high-traffic area, you might consider driving to work or school to reduce your distance.

And if you’ve switched to work or study from home since the outbreak began and haven’t returned to your workplace, ask your carrier to let them know – and take advantage of every opportunity.

4. Save your insurance premiums

One of the most straightforward ways to save money on insurance is including your home and auto insurancemeaning you buy multiple insurance policies from the same company.

Allstate, Liberty Mutual and GEICO everyone needs to give bundling discount — depending on the policies and covers you buy together. You can get a discount on your payment anywhere from 5% to 25%, depending on the provider.

5. Shop around for prices

Maybe you’re working from home permanently and need a little help. Or you are returning to the office and need more support now. In any case, it’s always a good idea to shop around to make sure you’re getting the best prices, as some shipping companies may offer you a big discount or lower than normal prices.

If you’re not sure where to start, check out CNET’s auto insurance roundup, where you can see our picks. best car insurance for all, cheap car insurance, best policies for young people and young drivers and the best options for military and veterans.

In addition to finding quotes online, you can directly reach out to other top insurance companies to inquire about possible discounts.

6. Check out the best driver discounts

If you pride yourself on being a good traveler, you’re in luck. Carriers offer discounts for safe driving and a long claim history, and there are several discounts to take advantage of here. Call your carrier to ask how to sign up for these types of programs. When you successfully sign up, you should see your price go down on your next bill.

State Farm for example, provides all no-accident discount, where you can get a discount if you’ve gone at least three years without an accident, and good driving discount, which lowers your premiums if you go three years or more without moving violations or accidents. .

Telematics insurance programs are a great way to get discounts for safe drivers, and this will result in lower driving discounts, too. These apps monitor how you drive and how you drive your car through a smartphone app or car’s connectivity. Call your carrier to enroll in the plan, and although discounts vary by carrier and country, you can check money As big as 30% discount is required. You’ll start at a base level that will be adjusted based on a telematics report, which will include things like your average speed and braking habits. For example, State Farm will review your telematics data every six months to determine how safe your driving has been, and based on those measurements, will discount your policy from 5% to 50%, depending on Bankrate.

7. Buy a cheap car

If you are looking to buy a new or used car, consider comparing the cost of insurance between different cars. Car insurance premiums are calculated using a variety of factors, some of which are based on the car itself, including the value of the car, maintenance costs and safety history.

“This is what people forget: You can buy a Honda or a Kia, and it’s cheaper, or you can buy a Mercedes or a Tesla – it’s going to be more expensive,” said Janet Ruiz, a rental agent. casualty underwriter and director of Strategic Communications at Insurance Information Institute.

And the difference in the cost of Mercedes insurance compared to Honda is difficult: The average cost of insuring a Mercedes-Benz is close. $4,505 per year, compared to the average of $2,151 per year for Honda. That means you pay about $179 a month for the Honda compared to $375 for the Mercedes.

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