Feeling the pain of high car insurance costs every single month?
With auto premiums recently rising more quickly than inflation, Consumer Reports said it’s more important than ever to find ways to lower your bill. The good news is, they found cost-saving tips that actually work.
First, raise your deductible and cancel coverage you don’t need. A $1,000 deductible compared with $500 might sound like a lot, but it could reduce your premium by more than 10%.
If your car is older, consider canceling collision and comprehensive altogether, because you could end up paying more than you would get back in repair or replacement costs. If your car’s current value is low, you probably don’t need to be paying for these extra coverages.
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Consider tracking. Programs like State Farm’s Drive Safe & Save Connected Car and Progressive’s Snapshot use technology to track your driving habits. Many drivers will get a discount right out of the gate, but Consumer Reports says there’s something to keep in mind: You’re looking at a privacy trade-off. So if you’re willing to give up some of these details about where you’re going and how you’re driving, how often you’re driving, then you might see some benefit.
But if you don’t want the insurer riding shotgun with you, then you might say no to some of these programs. Even if you don’t want to get tracked, being a safe driver will still reap rewards. Even one driving violation or insurance claim can quickly raise your rates.
And if you don’t think you’re getting a good deal with your current auto insurer, shop around. Two auto insurers have consistently landed in the top tier of Consumer Reports’ ratings: Amica Mutual Group and USAA Group.
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Consumer Reports also reminds car owners that in general, the more expensive the car, the higher the premium because expensive cars cost more to repair and replace, so be sure to keep that in mind when buying your next car.
