8 Ways To Lower Your Auto Insurance Premium | MoneyUnder30

It costs $9,282 a year to own and operate an average car, according to 2019 AAA data.

Because car expenses are such a high expense, and often overlooked, it’s worth the time and effort to try to reduce them as much as possible. While you may not be able to cut your commute short or trade for a more fuel-efficient vehicle overnight, there is one automotive expense where you can, as the incessant ads remind you, cut hundreds of dollars a year on matter of minutes. .

Reading: How to lower your insurance premium

yes, we are talking about auto insurance. And yes, you can almost always lower your car insurance bill if you know where to look.

here’s how to do it.

1. drive safely (and slowly)

Car insurance is quite expensive in the normal course. but if you have accidents or traffic violations, it can be ridiculously expensive. avoiding accidents and driving more carefully are among the best ways to keep your car insurance to a minimum.

If you already have moving violations, avoid adding more to your record in the future.

Even if you have one or more traffic violations in the recent past, time can be your friend here. In most states, moving violations are removed from your driving record after three years. while you wait, remember, being a safe driver pays!

2. buy an “insurance fit” car

The car you drive makes a big difference in your auto insurance premiums. There’s not much you can do about it right now, but there’s a lot you can do when it comes time to buy a new car. when you do, make sure the car is eligible for auto insurance.

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so avoid excessively expensive or sporty cars.

At a minimum, the cost of your collision coverage will increase with the value of the vehicle. But beyond the costs, it’s also important to understand that certain vehicles have higher insurance rates. for example, any vehicle that could be interpreted, at least loosely, as a sports car will cost more for insurance.

read more: collision vs comprehensive car insurance

Next, choose cars with lots of safety features

In addition to the type of car and the amount you pay for it, you should also make sure it has certain safety features. those features can result in lower insurance premiums.

The best way to do this is to get a list of safety equipment that will result in a lower car insurance premium from your car insurance company. once you do, make sure any car you buy incorporates as many as possible. some examples include: a restraint system, passenger and rear-seat airbags, and anti-lock brakes.

3. take a defensive driving course

If your driving record is below average, this may be a relatively quick way to lower your auto insurance rate. Some insurance companies will offer a discount if you complete a defensive driving course. the one you took in high school won’t do. It must be a course you have recently completed.

However, there’s a caveat here: Make sure the cost of the driving course doesn’t wipe out the savings you’ll get from the reduced premium. It may still be worth taking the course if you only burn through the first year’s savings. after that, you’ll get the benefit of the discount for every year thereafter.

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read more: discount defensive driving classes: save money on auto insurance

4. take advantage of behavior-based discounts

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Good drivers help insurance companies make money. For that reason, companies like Liberty Mutual outperform the competition by offering discounts to those with clean driving records. That means you’ll be rewarded for having no traffic violations, etc., and you can save even more by using the righttrack app to track your driving behavior.

plus, liberty mutual offers a lot of customization so you only pay for the coverage you need. all the discounts they can possibly find, I have found to help reduce the total cost. with auto insurance, it definitely adds up.

5. yes, you can pay to shop around

Many people stay with the same auto insurance company for years, but that’s not always the best course of action. Despite loyalty incentives, most insurance companies slowly raise their rates over many years because they count on customers being too lazy to shop around.

You should compare auto insurance rates from competing companies at least every two years.

This is important because every year different companies choose to reduce their prices to attract new business. They can offer discounts that are very attractive compared to the company that has been handling your car insurance for the last five years. Auto insurance is actually a more competitive market than most of us realize, so it requires some research from time to time.

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read more: best car insurance companies of 2022

6. come to work

When you apply for auto insurance, one of the first questions you’ll be asked is how many miles you need to drive each day round trip. Not surprisingly, the shorter your trip, the lower your car insurance premium will be. this makes sense because it means you’ll be on the road less and reduces the chance of being involved in an accident.

For people who have short commutes or are looking to shorten their commute, there are insurance companies that tailor their offer to your needs. metromile is a good example: you only pay for the miles traveled. so if you don’t drive much, you won’t pay much. however, it is important to note that metromile only operates in eight states, as of now (washington, california, oregon, illinois, arizona, virginia, new jersey, and pennsylvania).

Conveniently, most people look for a job closer to home when they change jobs. the fact that car insurance will be less expensive

See also: How much does car insurance increase after dui


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