Amazing offers that lower your car insurance rates

Amazing offers that lower your car insurance rates

Approximately 12% of US drivers do not have auto insurance, and in some states the number is even higher. For example, 29.4% of drivers in Mississippi are uninsured. While driving without insurance is a risky financial practice, it’s easy to see why so many drivers cross their fingers and hope for the best. Car insurance is expensive, with rates increasing dramatically since the start of the pandemic in 2020. Still, there are deals to be had – as long as you know where to look.

Take full advantage of car discounts

The goal is to find the cheapest car insurance with the highest level of coverage. However, prices can vary dramatically. For example, you might ask three companies about a particular discount and find out that each is offering a very different discount percentage. As you shop for car insurance, it pays to keep a list of which discounts you qualify for and how much of a break each company gives.

Discount

How to rank

Expected Average Savings

Automatic payment

Set up automatic payment so that your premiums are automatically deducted from your bank account

5%

Good student

Maintain a GPA of 3.0 or better

5% – 25%

Driver training

Complete a driver training course

5% – 7%

Safe driver

You have no accidents or fines on your driving license for at least three years

10% – 34%

Anti-theft devices

Buy a vehicle with devices designed to stop car thieves. This includes alarms, tracking systems and circuit breakers

5% – 25%

Anti-lock brakes

Drive a vehicle with anti-lock brakes to prevent skidding

3% – 5%

“Green” vehicle

Choose a green or hybrid vehicle

2% – 10%

Affiliation

Insurers sometimes offer discounts to employees of certain companies, college graduates of certain schools, and members of certain clubs

10% – 25%

Customer loyalty

While shopping for new car insurance every year or two is a good idea, if you stay with the same company for several years, you’ll likely get a discount

6% – 11%

Military

Be an active or retired member of the military or a close family member

Varies depending on whether you are deployed or at home

Senior

Be over the age of 55 (however, some insurance companies start raising rates after the driver turns 70)

15% – 35%

Usage

Insurers typically require a driver to drive less than 7,500 miles per year to receive this discount

5% – 40%

Paid in full

Pay your premium in full at the start of the contract

5% – 14%

Paperless account

Agree to receive all bills and communication from the insurer by email

3% – 5%

Student away from home

Be under the age of 25 and be a student living at least 100 miles from home

10% – 18%

Grouping

Combine your auto insurance with other coverage – such as homeowners, boat or renter’s insurance – with the same insurer

10%

Data source: Author’s research.

Once you find out what discounts a particular insurer offers, make sure the company knows you qualify. If you have a teenage driver in the family or a driver with a speeding ticket, it’s especially important to get every discount available for your household.

You have other options

Discounts may be one of the easiest ways to lower your premiums, but they’re not the only way. Here are other options to remember:

Check prices before you buy your next vehicle

Some vehicles are simply more expensive (or cheaper) to insure than others. Sometimes this is due to safety ratings, but this is not always the case. For example, the Honda Accord is one of the most stolen cars in the US, making it more expensive to insure than cars that are rarely stolen. Before you buy your next vehicle, shop around to find out how much it will cost to insure.

Look for usage-based insurance

With usage-based coverage, an insurance company monitors your driving habits to determine how much you drive and how safely you drive. If you are a safe driver who is not on the road much, you can save up to 40%.

I’m shopping

Loyalty is a good thing, but you are not married to your insurance company. At least once a year, look at different insurers to find out how much you could save by switching.

Bottom row

Few people would describe shopping for auto insurance as “fun,” but it’s an important way to protect yourself financially. The main thing to keep in mind is that good deals do exist if you’re willing to look for them.

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