21 Apr Ways to Lower Your Auto Insurance Premium
With all the uncertainty about the health of our loved ones and the health of the economy, cutting expenses wherever you can is a smart move. Auto insurance is one expense you may be able to reduce if you take a look at discounts your carrier may offer. To help you get the best price for your auto insurance, here is a list of discounts and ways to lower your auto insurance premium.
Bundle auto insurance with your home or renters insurance.
This is likely the biggest discount you’re going to find. If you haven’t already, we HIGHLY recommend having your auto insurance with the same carrier as your home/renters insurance. You may get as much as a 20% discount on both.
Ask about a low mileage discount.
Some carriers offer a discount for people who put fewer miles than the industry average on their vehicle. If you have a short commute or are working from home right now, you may qualify for this discount.
Ask about a higher deductible.
Your deductible is the amount you have to pay on a claim along with your insurance. So, for example, if your deductible is $250 and you have a claim that costs $10,000, you’ll have to pay $250 and your insurance will pay $9,750. Raising your deductible to $500 or $1,000 will lower your premium cost. However, we only recommend this for people who have enough savings where they could afford a sudden loss of $1,000.
A higher credit score means a better auto insurance rate.
The subject of improving your credit score could be a topic for an entirely separate blog, but the bottom line is that there isn’t much you can do in the short term. However, if your score seems lower than it should be given your credit history, you should take a look at your credit reports. It’s astonishing how many have errors on them. A study by the Federal Trade Commission found that 20% of people had an error on at least one of their credit reports. You’re entitled to one free copy of your credit report each year from the three credit bureaus: Equifax, Experian and Transunion. We recommend you check them for errors. There may be something you aren’t even aware of adversely affecting your finances!
Chat with us about other potential discounts.
Some carriers have discounts for people with no moving violations in a certain number of years, people who have taken a defensive driving course, teenage drivers with good grades, people who have anti-theft devices on their vehicles, etc. Get in touch with us to learn more.
Everyone’s situation is different. Let us help you assess where we might be able to get you a better rate on your auto insurance. Call us at 704-821-4460 or connect with us on Twitter, Facebook, Instagram, YouTube, LinkedIn or Pinterest.