The fallout of the corona virus for everyone has been harsh, and devastating, both emotionally and economically. All efforts to thrive will still face obstacles that can be overcome, if people keep in mind that now is the time to: cut costs, own less, spend less, and waste less, in all aspects of living.
Moving forward in 2021, by regaining financial stability, will require living frugally. Consumers must become masters at stretching every dollar, to accumulate the sustainable, financial savings that are so necessary today, and for the future. One way to spend less and save more is by reducing your auto insurance premiums.
Savvy Savings for Your Auto Insurance Premiums
Scrutinizing your expenditures with a focused mindset to live well for less, leads to successful savings. Determining your “must haves” and strategizing to cut costs, leads to fiscal success.
You must have auto insurance. Research from CCC has noted that coverage costs are likely to increase due to a greater number of distracted driving accidents, and the costly repairs to vehicles with smart technology. A focused review of your current policy will reveal options for keeping excellent coverage, while saving money.
Strategies which lower insurance costs include:
- Requesting a Multiple Policy Bundling discount (all policies, home, life, health, spouse, teen, motorcycle, and renters with one company) for a savings of 10% or more.
- Raising your deductible from $250 to $500 or $1000 (whatever amount that you can afford to pay for a claim) and save from 7% to 19% depending on the state in which you reside.
- Prepaying your policy premiums 6–12 months in advance for a discount that actually lowers your rates.
- Signing up for autopay to be eligible for a discount which will reduce premium costs.
- Maintaining a clean driving record with no violations, by driving defensively, without distractions such as cell phone texting, and other handheld technology. Some insurers, like Freeway Auto Insurance, rewards drivers for certain behaviors.
- Offering to use a safe driving app which tracks your driving behavior for a specific number of miles, as proof of safe driving, and earns large discounts.
- Earning Low Mileage Discounts by carpooling, or if you are working remotely, letting your car insurance provider know, for new discounted rates.
- If you’ve driven for three years or more, with no moving violations or accidents, inquiring about a safe driving discount. Insurers value and reward safe driving.
- Requesting a “theft-deterrent” discount if your car is parked in a garage when not in use, and has an ignition cut-off-switch, wheel locks, a car alarm, and the VIN # etched on the window.
- Choosing a hybrid or alternative fuel vehicle is often rewarded by your car insurer as a “go green” amenity, which is environmentally friendly. Ask your agent if there is a discount or a higher rate due to expensive repairs. Knowledge before purchase is a wise strategy.
- When insuring your “teen-driver” asking about good student discounts, and the option to take a defensive driving course, can save from 2% to as much as 25% on coverage rates.
- 55 or older drivers with an excellent driving record can reduce their rates by choosing a policy which offers senior benefits.
- Choosing vehicles with anti-theft devices, security systems, and safety features such as:
- Electronic stability control
- Daytime running lights
- Anti-lock brakes
- Automatic seat belts
- Adaptive cruise control
- Rear-view cameras
- Lane departure warning systems
- Rear-seat airbags
- Collision-avoidance systems
Line by Line Policy Design – Coverage with Your Needs Showcased
Take the time to read your current car insurance coverage. Carefully determine the basic coverages you have which should fit your specific needs, and those of your family, if you have bundled your policies. Make sure that you have property damage liability, bodily injury liability, collision and comprehensive in appropriate amounts. These numbers frequently change and need adjusting.
Check to see if you are protected against an uninsured, or under insured driver, should they cause an accident involving your car. You might want to omit rental car or towing insurance, which can be amended when needed. Roadside coverage may include towing, and omitting any overlapping protection, saves money.
Your savvy scrutiny of your car insurance rates, coverage, and available discounts, should be on going as changes frequently occur. Remember too, that comparison shopping gives you the knowledge to discover which auto insurance rates are the right fit for your needs, and give the best coverage, dollar for dollar.