Auto insurance is a necessary expense for anyone who owns a car in the United States. However, there are ways to save money on auto insurance without sacrificing coverage. We reached out to industry insiders for expert advice on how to save money on auto insurance.
1. Shop around for quotes
The first step in saving money on auto insurance is to shop around for quotes from different providers. “It’s important to look at different options and compare pricing and coverage,” says Amy Danise, chief insurance analyst at Forbes Advisor. “Don’t go with the first insurance company you find. Doing some research can help you understand what’s available and what’s a good price in your area.”
2. Bundle your policies
If you have multiple insurance policies, you can often save money by bundling them together. “Insurance companies love to have more of your business, so they’re likely to offer a discount if you have multiple policies with them,” says Danise. “It can be worth considering combining your home, auto and life insurance policies with the same company.”
3. Increase your deductible
Raising your deductible is an easy way to save money on your auto insurance premium. “If you’re willing to take on more risk in the form of a higher deductible, you can often save quite a bit of money on your premium,” says Nicki Charbonneau, senior content marketing manager at Clearsurance. “Just make sure you have enough money set aside to cover the deductible if you do need to file a claim.”
4. Take advantage of discounts
Insurance companies offer a variety of discounts that can help you save money on your auto insurance. “Some common discounts include good driver discounts, multi-car discounts, and discounts for completing a defensive driving course,” says Danise. “It’s worth asking your insurance company what discounts are available and if you qualify for any of them.”
5. Maintain a good credit score
Your credit score can affect your auto insurance premium. “Insurance companies use credit scores as a factor in calculating premiums,” says Charbonneau. “Maintaining a good credit score can help you save money on your premium.”
6. Consider usage-based insurance
Some insurance companies offer usage-based insurance, which calculates your premium based on how much you drive and how safely you drive. “Usage-based insurance can be a great option for people who don’t drive very often or who are very safe drivers,” says Danise. “If you’re willing to allow the insurance company to track your driving, you may be able to save money on your premium.”
In conclusion, saving money on auto insurance is possible by shopping around for quotes, bundling policies, increasing your deductible, taking advantage of discounts, maintaining a good credit score, and considering usage-based insurance. By implementing these strategies, you can save money on your auto insurance without sacrificing coverage.