5 Tips To Lower Your Auto Insurance Bill

5 Tips To Lower Your Auto Insurance Bill

March 19, 2024

Auto insurance is essential for your protection and that of others on the road, but it can put a dent in your wallet. If you're looking to reduce your car insurance bill, consider these tips.

1. Bundle your coverage

You can typically get discounts by purchasing multiple insurance policies through the same insurance company. For instance, if you buy auto and homeowners coverage or insure multiple cars through one company, you should expect lower rates on your car insurance.

2. Choose a higher deductible

Your deductible is the amount you pay for covered repairs before your car insurance kicks in and pays the balance. If you increase your deductible, your premium should decrease. Keep in mind that you will need to pay your deductible in the event of an accident, so don’t commit to more than what you can afford. Experts recommend keeping the deductible amount in an emergency fund in case you need it.

3. Reassess your limits

Perhaps your limits are too high. Reassess your limits, but think twice before opting for lower liability limits just to save money. The decision could come back to haunt you if you’re at fault in an accident. You should always have enough liability coverage to protect your assets.

4. Check for unnecessary or duplicate coverage

If you have an older car, check if you have comprehensive or collision coverage. You can save money by dropping it. Also, be sure you don’t have duplicate coverage.

5. Consider usage-based insurance

Some insurance companies now offer usage-based insurance programs. Usage-based car insurance, also called pay-as-you-drive (PAYD) insurance, calculates your premium based on the actual usage of your car.

Here’s how PAYD works: You place a device in your car to record certain information, including how much you drive and how abruptly you brake. If the device shows that you drive less often than average or practice safe driving, you’ll receive a discount on your car insurance. While insurance companies say that most customers receive discounts, saving money is not guaranteed.

For more advice on paying less for car insurance, start a conversation with your insurance agent. They can suggest adjustments to your policy that can significantly decrease your premiums.