A few small changes could amount to big savings when it comes to what you pay for car insurance.
Chances are you’re paying more for car insurance these days -- on average, 18% more! Even as inflation cools, car insurance prices remain high. The experts at Consumer Reports blame more crashes, increased litigation, and higher repair costs. The good news: Small changes could get your premiums as low as possible.
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Here are changes Consumer Reports suggests you make to try and save:
Increase your deductible
Now might be the time if you haven’t raised your deductible recently. Consider a $1,000 deductible to save on your annual premium. Remember, you’re increasing your potential out-of-pocket repair costs after a crash, so make sure you have access to the money just in case. Or use the savings to build an emergency fund.
Drop collision and comprehensive insurance
As your car’s years and miles pile up, its value decreases. That lowered value might not justify the expense of paying for collision and comprehensive coverage.
“As a general rule, when the premium is more than 10% of the car’s value, it’s time to consider dropping collision, and maybe comprehensive, too,” explained Chuck Bell with Consumer Reports.
Take a defensive driving course
Some insurance companies let you take a safe-driving course to get a discount -- which could equal $200 in savings per year. It only takes a few hours to take the course, which tends to cost around $25, and you might even be able to take the course online.
Shop around then bundle
As we’ve told you before, you might be able to save hundreds a year by combining your home and auto policies. Click here to see creative ways to lower your home insurance premium.
Sign up for driver monitoring
You can save up to $800 with some insurance companies if you allow them to track your driving habits with a smartphone app or a device that plugs into your car’s diagnostic port—so long as you prove to be a safe driver. There are some tradeoffs. Remember, you’re giving up some privacy, much the same way you do when using certain smartphone apps, in exchange for a potential discount.
Save for driving less
If you drive under 10,000 miles per year most insurance companies factor in annual mileage in their pricing. You could save about $100 if you’re not making the mark. So, call your insurer and let them know about your driving habits.