21 Ways To Save Money On Auto Insurance Now
The average cost of auto insurance in the United States is $ 1,674 per year for full coverage, according to 2021 data compiled by Quadrant Information Services. One of the best ways to save money is to change policies: a Nerdwallet survey found that a good driver could save around $ 417 per year by switching.
Another important way is to maximize your discounts. “Ask your insurer if you’re missing out on any discounts you might be able to take advantage of,” says Ben Moore, NerdWallet insurance expert. As for how much you can save by looking for discounts? “Auto insurance companies usually cap discounts, but you can still save 30% or 40% on your policy,” says Les Masterson, insurance analyst at CarInsurance.com. Here are some of the discounts you may want to request.
Blank driving record
A record free of accidents and traffic violations is one of the biggest discounts available to drivers, Masterson says. The amount of savings varies by insurance company, but can generally save drivers between 10% and 30% on their annual premiums.
When you bundle auto, home, rental, or other insurance policies with the same company, you can often save hundreds of dollars a year on all of your policies. “Your insurance company will usually offer big discounts to someone who insures both their home and their car with them. If someone is happy with the rate and customer service they receive from their home insurance company, it’s a great idea to consider purchasing auto insurance from this group as well, ”says Moore.
Insure multiple cars in your household with the same company and you could save money. Geico, for example, announces that you could save up to 25% by doing this.
Safe driving course
Some companies offer discounts for taking special courses like a defensive or safe driving course, says Moore.
“Quote with us before your current policy expires and you could save money when you sign with us,” Liberty Mutual announces. Other insurers have similar discounts.
Membership of certain groups
Teachers, military personnel, alumni, professional groups, local organizations – insurers offer many different discounts on this front. “In the same city, one insurance provider may offer discounts to people outside of certain affiliated groups, such as a social club or local organization, while another may give more discounts to those who have. taken safe driving lessons or made consistent payments on other bills, ”says Hurst.
Student away from home
If your child is in school and therefore rarely drives your car, you can save big (sometimes 10% off, says Masterson).
Moore notes that “if you allow the company to track your driving habits through a mobile app or device that plugs into your car’s diagnostic port,” you may be able to save money on the. car insurance. Look for a company that only rewards good driving, rather than punishing you for hard braking, driving at night, using the phone while driving, etc.
School-aged and college-aged drivers who score well or do well in school (insurers have slightly different rules for what qualifies, but often a B and above average will do) may qualify for this, and Masterson says it can save you 10% off your policy.
Those who own their home may be able to save a small amount each year.
Pay in full, pay automatically and pay on time
Pay your bill once or twice a year and you can save a small amount. In addition, you can also benefit from a break if you get the payment automatically deducted from your bank account and / or if you pay on time each pay period.
Buy your policy online
This can save you a small amount of money talking to a customer service representative about getting your policy at some companies.
Don’t receive paper invoices and you may be able to save.
Drive under a certain number of kilometers
If you don’t drive a lot, you may be eligible for a discount. Occasional drivers, or those who typically drive less than 7,500 per year, can qualify for a rebate of several hundred dollars per year.
Having things like anti-lock brakes, electronic stability control, and adaptive headlights can help you save money.
A car equipped with anti-theft technology can save money.
Those with hybrid or electric vehicles may be able to save.
Drive a new car, or the right kind of car
Janet Ruiz, director of strategic communications for the Insurance Information Institute, recommends checking the car’s IIHS safety rating before purchasing the car, as this can affect how much you pay for auto insurance. In addition, Allstate, for its part, offers you a discount if “your car is of a current model year or a year before and you are the first owner”.
Good credit-based insurance score
Ruiz notes that this is a way to get discounts. “Many US auto insurance companies use credit-based insurance scores to help determine risk when providing insurance quotes,” Allstate explains, adding that this is true “unless you are lived in Massachusetts, Hawaii, or California, where the practice was banned. “