Lifehacks to slash your car insurance bill

Since car insurance prices are taking a new jump in America, while having a policy remains obligatory in nearly every state with just two exceptions (only New Hampshire and Virginia have some sort of exemption on that point), many motorists are looking for opportunities to trim their car insurance bills, yet without sacrificing the coverage.

Here are some tried-and-true tricks to cut down your automobile insurance premiums while staying pretty protected, financially.

Investigate the Market

There is no shortage of carriers in the USA, and by doing a little comparison research you are much likely to find a better deal than your current one. The Internet drips with online quote comparison services allowing you to see offerings from hundreds of operators based on your information. Reckoning to independent agents is also quite a wise move because these guys cooperate with numerous carriers and can help you find a lucrative offer to fit your life situation.

Do not underestimate smaller, regional companies.

You should understand that just four corporations control over half of the country’s vehicle insurance market – GEICO, State Farm, Allstate, and Progressive. This means that they dictate their rules to the whole industry and are more interested in capitalizing on your needs, rather than showing understanding for your circumstances and charging you with a cheaper premium. Less-known firms need to beat aggressive competition and suggest a better value to clients than hyped big names.

That is why smaller players often prove to deliver better client service and offer more budget-friendly quotes.

Moreover, most underwriters will generously reward you if you terminate your policy with your current company and switch to them. This is the case when your non-loyalty to a single brand may bring good savings on your car insurance with another company, so you may take advantage of that.

Group All Your Policies for Greater Savings

You have bought multiple policies from the same company, you may bundle them and get a fat discount on your car coverage. You can combine your homeowner or health insurance with the auto one for the sake of the economy. Even if you do not hold many assets to cover, you can include an additional layer of protection to your car insurance by purchasing an umbrella policy.

It will safeguard you from liability beyond limits indicated in your car insurance, including traumas, damage to property, and personal liability claims. However, umbrella is geared toward protecting people who have suffered because of your wrongful act, and it does not cover you or your property.

You Deserve Discounts!

While carriers mercilessly raise your bill after each single speeding ticket, they are very reluctant when it comes to incentivizing cautious drivers. Nevertheless, if your driving is not sullied, you have a right to ask for well-deserved discounts. There is always a raft of reasons to give you price abatement: having a clean driving past, equipping your car with anti-theft and safety gimmicks, completing defensive driving training, being a member of a particular professional organization or affiliate group (such as military of federal employees), signing up for a paperless policy, earning good marks at school – in fact, there are dozens of factors that can keep your car insurance cost down. Ask your insurer which discounts are available for you and check that they all are reflected in your bill.

Opt-out of Comprehensive and Collision Coverage

A collision plan is designed to compensate for the repair of your car if it is destroyed by another car or an unanimated object like a road sign. A comprehensive plan will reimburse for your car repair if it is compromised as a result of a non-collision event, including natural disasters, crashes against animals, fires, falling objects, or vandalism.

Comprehensive also indemnifies for stolen vehicles. Both types are not mandatory because they do not cover your liability, but the cash value of your vehicle. If your automobile is quite old, and its cash value is not significant, there is no much sense in shelling out for C&C coverage because your premiums may be considerably higher compared to the actual worth of your vehicle.

Hike Your Deductible

Another nifty trick to cut your car insurance fees is to raise your deductible (a specified sum of money a client agrees to pay out-of-pocket before the insurance kicks in). If you only have state minimum liability coverage, there is no deductible in your policy because this type of insurance is dedicated to protecting other people and their property if they suffer due to your wrongful driving. At the same time, comp and collision options come with a deductible, and it has a very interesting feature behind it.

The higher your deductible, the lower your premiums. However, C&C insurance does not work well for older and cheaper cars because your premiums for such protection may appear to be dramatically higher than the actual cost of your auto when it is time to file a claim for repair or replacement.

Usage-Based and PPM Are Decent Alternatives

If you do not make many miles and are a careful driver, there is a smart way for you to pull your car insurance cost down. Usage-based coverage plans monitor your driving behavior and estimate your rate based on the findings. Many reputable carriers offer such programs including DriveWise by Allstate, Snapshot by Progressive, DriveSafe&Save by State Farm to name a few.

If your annual kilometrage does not exceed 10,000 miles, you may benefit from so-called pay-per-mile (PPM) or telematics insurance (also referred to black box, pay-as-you-drive, smartbox, or GPS insurance). These programs also revolve around the idea of putting a smart electronic device into your car to evaluate how well and how much you drive and then offering you a record-based quote.

Slamming on the brakes, driving at night or during bad weather, handling a phone while driving, the intensity and duration of accelerations – these clever devices record each your movement at the wheel.

Once you prove to be a conscientious driver, the company will be glad to reconsider your premiums in your favor. It is, perhaps, the fairest quote because it considers exactly YOUR driving schemes, not the metrics of an average driver of your group. Companies offering such solutions are Allstate, Nationwide, Metromile.

Stay Clear

The best drivers get the best quotes on car insurance. Points on your license can make you look a high-risk driver in the eyes of an insurer, pushing your premiums up. You can check the points on your license online. For this, you can go to the website of a motor vehicle agency that issued your license in your state and entering your name and the driver’s license number in the appropriate form.

Most points will disappear from your record over time. However, serious offenses such as driving under the influence or speeding may reflect on your driving history for ten years. Fixing errors on your record can bring a cheaper car insurance rate.

Raise Your Credit Score

Your credit score is one of the key factors that determine your car insurance rate. Underwriters in nearly every state will scrutinize your credit history before setting your rate where (viewing a client’s credit score for underwriting is only not allowed in Massachusetts, California, Michigan, Hawaii). Credit types and lengths, late payments, and failures to pay – your insurer will get the lowdown on your creditability before approving your application for car insurance (if it even will be approved, of course).

Generally, an FICO score under 580 is considered poor, but carriers develop their own methodologies to calculate your repayment ability. You can raise your credit rating and relish lower premiums if you pay your debts on time and settle current arrears.

Exclude extra drivers from your policy

Including several drivers to your policy may translate into higher premiums. This is especially important for policyholders who add teen drivers to their plan as youngsters tend to be higher-risk drivers, making your bill soar. Consider removing everyone from your policy who does not use your car regularly or who is potentially a high-risk chauffeur.  

Pay a lump sum

Paying the whole insurance sum in advance turns out to be much cheaper than in installments as carriers appreciate those who make a one-off payment and grand very lucrative discounts on car insurance. Also, try to avoid late payments, otherwise, your coverage will drop, and renewing it will drain your wallet.